RHONE MA HOLDINGS BERHAD

KLSE (MYR): RHONEMA (5278)

You're accessing 15 mins delay data. Turn on live stream now to enjoy real-time data!

Last Price

0.66

Today's Change

-0.01 (1.49%)

Day's Change

0.66 - 0.665

Trading Volume

44,300


Be the first to like this.

441 comment(s). Last comment by Peace99 2 weeks ago

Nathan27

425 posts

Posted by Nathan27 > 2022-03-01 10:41 | Report Abuse

Good company but bad operator, don’t expect any movement anytime soon….every spike followed by a sell down… don’t follow operator who love to con people’s money

Got_Milk

36 posts

Posted by Got_Milk > 2022-03-01 11:45 | Report Abuse

Hi @teareader818
Based on production volume, biological assets (no. of milking cows), milk processing capacity (14.4mil litres), Kulim-JV of RM41 mil translating to 2,000-3,000 milking cows (cost per milking cow AUD3,000 or RM10,000) assuming RM10 mil is allocated for farm facilities and infrastructure, Rhone Ma is indeed grossly undervalued

Note Farm Fresh will IPO at a historical FYE 31 March 2021 of PE=36x* without taking into account the inevitable rise in share price (fresh milk is after all the highest quality nutrition as nature intended and like healthcare, nutrition standards only go one way, with the per capita consumption in developed countries at least 5-10 times higher than developing countries)
*2.5 bil market cap / 69 mil adjusted net profit (one off tax)

teareader818 @ Got_Milk, if Farm Fresh is priced at 1.35, is Rhonema undervalued?

Posted by teareader818 > 2022-03-01 12:25 | Report Abuse

@ Got_Milk, thanks for your answer, though I have to admit most of it is still over my head.

Got_Milk

36 posts

Posted by Got_Milk > 2022-03-01 14:09 | Report Abuse

Hi teareader818, there are findings which I may or may not release as accumulation is ongoing and the proposition for Rhone Ma becomes more compelling as the Farm Fresh IPO progresses...

In the simplest terms,
1) at the IPO price of RM1.35 you are paying Farm Fresh RM2.5 bil for the amount of X milking cows it has and Y processing capacity (and compare this with Rhone Ma)
2) Out of the large offering of RM1bil in the IPO, RM700 mil will go to the promoters, with only RM300mil to be utilised by Farm Fresh, of which only RM200mil will be used for capacity expansion. In comparison, the Kulim JV has a cost of RM41 mil and Rhone Ma's milk processing plant will cost RM7.5mil, for a total cost of close to RM50mil. Comparing the capex of Farm Fresh of RM200mil vs Rhone Ma of RM50mil, should give you an indication of the scale and growth potential of Rhone Ma's dairy segment (note: fresh milk demand far exceeds supply)

Most importantly, you get all of this paying only RM140mil for Rhone Ma vs RM2.5bil for Farm Fresh (note: Kulim is backed by JCorp, both of which are orders of magnitude larger than Farm Fresh). Hope this helps, cheers

GM

Posted by teareader818 > 2022-03-01 16:20 | Report Abuse

@ Got_Milk, thanks for the additional info and I commend you for being resourceful in your research. What I find puzzling is that with the ongoing accumulation, the price of the share is moving in the opposite direction, down rather than up.

Got_Milk

36 posts

Posted by Got_Milk > 2022-03-01 20:36 | Report Abuse

If you're a trader it will be bad, but if you're a long term investor, you want it as low as possible

Got_Milk

36 posts

Posted by Got_Milk > 2022-03-01 20:55 | Report Abuse

Referring to the estimates on the 2000-3000 number of milking cows for the Kulim JV of RM41 mil, after assuming RM10 mil is used for the farm facilities, about RM30 mil would be available while AUD $3000 would get you the best quality pure breed Holstein milking cow (ie producing cow, as opposed to heifers or bulls). Those who attended Farm Fresh's analyst briefing 28/2 will be able to confirm the RM10k per dairy cow figure

Posted by wallstreetrookie > 2022-03-02 20:47 | Report Abuse

Rhonema is QL Resources
Farm Fresh is Leong Hup International
Understand?

Posted by wallstreetrookie > 2022-03-02 20:55 | Report Abuse

Rhonema is not a dairy company ffs. It sells animal health products to veterinarians and clinics. Omg y'all can't even do basic research. It is not the company's main business segment

Posted by wallstreetrookie > 2022-03-03 12:19 | Report Abuse

Some Facebook bloggers promoted this stock heavily and suddenly a wave of retail investors piled onto this stock. Institutions refuse to buy this stock now

Posted by teareader818 > 2022-03-03 19:19 | Report Abuse

Does not make investment sense.
Some Facebook bloggers promoted this stock heavily and suddenly a wave of retail investors piled onto this stock. Institutions refuse to buy this stock now

Got_Milk

36 posts

Posted by Got_Milk > 2022-03-04 10:32 | Report Abuse

Please refrain from commenting if you are unsure

Rhone Ma has raised RM13.46mil from its private placement which will be used for the construction of a 14.4mil litre per annum milk processing plant

The Rhone Ma Kulim JV of RM41mil will have a production of 11 million litres of fresh milk per year. Now do you even know what is Farm Fresh's fresh milk production per year from its own Malaysian farms

Posted by teareader818 > 2022-03-04 10:47 | Report Abuse

I read somewhere, Rhone Ma produces A2 milk from their farms in Malaysia and Australia which is suitable for those who are allergic to milk. Only company to do that in Malaysia.

Got_Milk

36 posts

Posted by Got_Milk > 2022-03-04 11:13 | Report Abuse

The stock has suffered from the perception of being a 'pump-and-dump' stock in the past based on its share price history. And it is clear some here are buying with the expectation that the same thing will happen again, hoping to make a 'quick buck'. This is not the company for you

From the first foray into the ruminants and dairy milk sector, to the signing of the Kulim JV, and the fund raising for the milk processing plant, the speed at which Rhone has moved is a testament to the company's entrepreneurial drive and ability to execute. We are excited to be part of dairy cow farming (and much rather leave it to the animal health and ruminant experts in Rhone Ma and their partners in A2 Fresh (OLSB, NLN, NLF) than venturing on our own). Milk provides the highest quality nutrition and there are simply no substitutes. There is a reason why a mother's milk is all that a newborn child needs

Posted by wallstreetrookie > 2022-03-05 12:50 | Report Abuse

Rhone-ma is future QL Resources
Farm Fresh is future Leong Hup International
That's all I care about

Posted by wallstreetrookie > 2022-03-05 13:05 | Report Abuse

Of course I know about their output. You think I am a dumbass or what. Their acquisition of Nor Lazuri or whatever it's called is not gonna make them beat Farm Fresh in one quarter. It could be a useless acquisition

Posted by wallstreetrookie > 2022-03-05 13:06 | Report Abuse

Of course I know what's going on. The foray into dairy milk is in progress, still has yet to materialise. I will not use it to calculate future earnings for the next 2 quarters at least. The Nor Livestock Farm Sdn Bhd acquisition does not guarantee market share

Right now, Farm Fresh has a market share of 18% in RTD milk and 42% market share in chilled RTD milk. Their milk output in Malaysia is 7.0 ~ 9.0 litres (?0.5) and yield is around 15. Their Australian milk production is much higher. Output is 13.8 litres yield is more than 30.

Rhone-ma is not going to beat Farm Fresh for the next few quarters of 2022. But since we are investors, all we care about is how much profit we can earn. Rhone-ma has better growth prospects and share price/market cap appreciation. But I want to give you a realistic picture. The company is not the winner in the dairy space. Its main business is animal health.

Institutions will further suppress the share price until god knows when

Posted by wallstreetrookie > 2022-03-05 13:07 | Report Abuse

In conclusion, Rhone-ma will make you richer than Farm Fresh investors. That's for sure. One is a million dollar cap company the other one is overhyped overvalued billion dollar cap hot garbage

Posted by wallstreetrookie > 2022-03-05 13:30 | Report Abuse

Next week I buy another 15k.
Long term investor for the win

Posted by wallstreetrookie > 2022-03-05 13:30 | Report Abuse

I?ll subscribe to the next private placement

Posted by wallstreetrookie > 2022-03-05 13:31 | Report Abuse

Who else is subscribing to the private placement?

Posted by wallstreetrookie > 2022-03-05 13:37 | Report Abuse

When Farm Fresh is listed, I sell my IPO shares and pump into Rhone-ma. Let?s go!!!

Posted by teareader818 > 2022-03-05 16:35 | Report Abuse

I think Rhone Ma's main business will always be in animal health. Their forte is in animal husbandary. They treat milk production as a by-product of their R&D and currently sells their milk off-farm. Kulim will later conveniently take their milk off them. With the government's encouragement, practically every state is setting up large cattle farms and when they encounter problems, which they will, who will they look for ? Rhone Ma of course!

Posted by LongTermInvestor8 > 2022-03-07 19:37 | Report Abuse

2021
- Rhone Ma planned to increase its cattle herd to 350 head by the end of 2021, raising its monthly milk production from 30,000 L/ month to approximately 65,000 L.
- GMP (Good Manufacturing Practices at Nilai Utama Enterprise Park) commenced operations in April 2021 is running at more than 35 per cent capacity.

2022
- By end-2022, the Group?s target is to produce 120,000 L of milk per month.

2023
- New GMP in Nilai target to achieve 100% by 2023 - estimated to increase annual production capacity by 4x (2,500 tonnes, existing plant in PJ produce only 637 tonnes per annum)

2025
- Rhone Ma hopes to build the plant with a capacity of 14.4 million litres per year in Kapar, Selangor by the third quarter of 2025.


Note
- Rhone Ma Holdings Bhd via its subsidiary A2 Fresh Sdn Bhd, has entered into a joint venture agreement with Kulim (Malaysia) Bhd to develop, operate and manage a potential dairy project. The initial investment required for the project will be up to RM41.4m, which will be funded through equity in the form of subscription of shares by the shareholders in proportion to their shareholding ratio in the special purpose vehicle company.
- In this JV, Kulim owns 65% shares, while A2 Fresh S/B holds 35% shares. Since A2 Fresh S/B is 49% owned, Rhonema will have just 17.15% share in this dairy project.
- A1 protein is even linked to diabetes, heart disease, sudden infant death syndrome and autism etc. However, those links are not confirmed. A2 milk is marketed as a healthier choice without such troublesome issues. It's reported that Rhonema is the first producer offering fresh A2 milk in Peninsular Malaysia.
- Kulim is a well-known plantation giant which was taken private and delisted from main board in 2016. It's a subsidiary of Johor Corporation. Johor Corp owns famous brands such as KPJ, KFC, Pizza Hut, Ayamas, Life etc.

Posted by wallstreetrookie > 2022-03-09 22:51 | Report Abuse

Guys, seriously subscribe to Farm Fresh IPO. Make short-term profits and then pump your profits into Rhone-ma. Then hold for 3 years. Guarantee you can afford down-payment on new house.

Posted by wallstreetrookie > 2022-03-09 22:52 | Report Abuse

!remindme in 3 years.

9 March 2025

Posted by wallstreetrookie > 2022-03-09 22:53 | Report Abuse

Anymore private placement, I want to subscribe

Posted by wallstreetrookie > 2022-03-11 20:56 | Report Abuse

Got some shares of Farm Fresh. After the IPO, pumping profits into Rhone-ma

Blacksails

762 posts

Posted by Blacksails > 2022-03-14 21:08 | Report Abuse

Last month i bought 3 liter fresh milk from Lotus's supermarket for only RM2.00 only

Posted by wallstreetrookie > 2022-03-14 21:09 | Report Abuse

Farm Fresh is a bad long term investment. Rhone-ma is well-diversified.

Posted by wallstreetrookie > 2022-03-14 21:09 | Report Abuse

Dude, I am definitely selling Farm Fresh at open and buy more Rhone-ma.

Posted by wallstreetrookie > 2022-03-15 08:25 | Report Abuse

Rhone-ma is a sleeping giant. 1000x better than FFB. Farm Fresh is going to tank after IPO. I have never seen an IPO survive such high valuation except Mr DIY and Public Bank all the banks

Posted by wallstreetrookie > 2022-03-15 08:28 | Report Abuse

Rhone-ma will fly in 2025. Mark your calendars

Posted by wallstreetrookie > 2022-03-15 08:30 | Report Abuse

Rhone-ma is the next QL Resources
Farm Fresh is the next Leong Hup International
Too much hype never ends up well. Even Mr DIY is a miracle

Posted by wallstreetrookie > 2022-03-15 08:30 | Report Abuse

Asking my grandma to all in Rhone-ma

Posted by wallstreetrookie > 2022-03-15 08:31 | Report Abuse

Currently the best long term opportunity I can find on Bursa

Posted by wallstreetrookie > 2022-03-15 12:40 | Report Abuse

Henry Goh from KLSE Screener wants to buy at 50 cents

Posted by wallstreetrookie > 2022-03-16 17:55 | Report Abuse

I promise you guys, if I make a lot of money from the Farm Fresh IPO, I will pump Rhone-ma

Posted by wallstreetrookie > 2022-03-16 17:55 | Report Abuse

Farm Fresh is Leong Hup International
Rhone-ma is the next QL Resources

Posted by wallstreetrookie > 2022-03-16 18:12 | Report Abuse

@Got_Milk Why do you keep promoting on public forum? Keep quiet and slowly collect

Posted by wallstreetrookie > 2022-03-16 18:12 | Report Abuse

No need to promote

Posted by wallstreetrookie > 2022-03-16 18:13 | Report Abuse

Don't promote on KLSE Screener especially. A lot of gamblers and traders on KLSE Screener. i3investor more long-term oriented investors

rikki

2,019 posts

Posted by rikki > 2022-03-17 17:31 | Report Abuse

Rhone Ma Holdings Bhd (Fundamental BUY with TP RM1.07)
• Rhone Ma Holdings Bhd (Rhone Ma) is an end-to-end animal health solution provider. The company ventured into fresh milk production in 2019.
• Despite the slow business environment during the Covid-19 pandemic, Rhone Ma’s revenue has recorded a 12% CAGR over the past 2 years. In tandem with the expanding market revenue in Animal Health and Nutrition Industry, the company’s market share has grown from 4.7% in 2018 to 5.8% in 2021.
• Rhone Ma’s GMP compliant plant in Nilai which has a production capacity of 2,500 MT/year has commenced operation in April 2021. The plant is currently 35% utilised and is expected to increase gradually. Management guided the plant to reach full utilisation rate by end 2023 as the PJ GMP compliant plant has been running at full capacity (637 MT/year).
• Its Human Healthcare segment revenue grew 231% in 2021, attributed to the Covid-19 outbreak. The company’s CiTest Covid-19 Antigen Rapid Test Kit is widely used by clinics and hospitals. Moving forward, Rhone Ma will continue its R&D effort to expand its human healthcare products range such as other purpose test kit.
• We see Rhone Ma’s venturing into Ruminant industry as synergistic to its animal health product segment. Meanwhile, the government aims to increase the country’s fresh milk self-sufficiency level to 100% within five years; and this will create an opportunity to its 49% owned A2 Fresh SB. The company is planning to expand its dairy farm from 300 cattle to 500 cattle by end 2022, producing its own brand milk targeted to launch in 1Q2023.
• According to Protégé Associates, the Animal Health and Nutrition Industry has grown to a RM2.33bn revenue industry vs RM2.09bn in 2018. We see Rhone Ma is well positioned in the growing livestock market in Malaysia. BUY with a target price of RM1.07 based on 18x PER FY22F (3-year average).
• Financially, the company’s leverage is manageable with net gearing of less than 10%.

Rakuten Trade Research 17/3/2022

Posted by wallstreetrookie > 2022-03-17 18:26 | Report Abuse

Don't promote on KLSE screener

Posted by wallstreetrookie > 2022-03-18 10:45 | Report Abuse

I am excited guys

Posted by wallstreetrookie > 2022-03-18 11:35 | Report Abuse

Stay quiet and don't promote on KLSE Screener. Henry Goh bought a lot quietly

Nathan27

425 posts

Posted by Nathan27 > 2022-03-23 15:36 | Report Abuse

Good company but not good operator , boss don’t want to play his counter.. so obvious blocking the share price from moving up… to those who are not in yet, go find better operators with more commitment , those already in, just forget about it, rhonema won’t move anytime soon… cheers..

Posted by wallstreetrookie > 2022-03-25 16:59 | Report Abuse

Bursa Company Warrants Guide 2022
1. Revenue-WA
2. Sernkou-WA
3. Rhonema-WA

Post a Comment
Market Buzz