MSM MALAYSIA HOLDINGS BERHAD
KLSE (MYR): MSM (5202)
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Last Price
1.22
Today's Change
+0.01 (0.83%)
Day's Change
1.21 - 1.24
Trading Volume
929,000
IPO Info
Offer Period
Opening
2011-06-02
Closing
2011-06-13
Time Table
Allotment Date
2011-06-24
Listing Date
2011-06-28
Price
Issue Price
3.38
Units
702,980,000
Share Capital
0.000
No of Shares
Public Issue
125,000,000
Offer for Sale
109,564,700
Private Placement
-
Issuing House
MIDF 641
ISIN Code
MYL5202OO006
Prospectus:
THE INITIAL PUBLIC OFFERING (“OFFERING”) OF UP TO 234,564,700 ORDINARY SHARES OF RM0.50 EACH IN MSM MALAYSIA HOLDINGS BERHAD (“MSM HOLDINGS”) (“SHARES”) COMPRISING OFFER FOR SALE OF UP TO 109,564,700 EXISTING SHARES (“OFFER SHARES”) AND PUBLIC ISSUE OF 125,000,000 NEW SHARES (“ISSUE SHARES”) IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR 702,980,000 SHARES ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD:
(I) INSTITUTIONAL OFFERING OF UP TO 206,444,700 SHARES COMPRISING:
• UP TO 73,811,600 OFFER SHARES TO MALAYSIAN INSTITUTIONAL AND SELECTED INVESTORS AND FOREIGN INSTITUTIONAL AND SELECTED INVESTORS OUTSIDE THE UNITED STATES OF AMERICA IN RELIANCE ON REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AT THE INSTITUTIONAL PRICE TO BE DETERMINED BY WAY OF BOOKBUILDING (“INSTITUTIONAL PRICE”);
• 35,753,100 OFFER SHARES AND 45,089,900 ISSUE SHARES TO BUMIPUTERA INSTITUTIONAL AND SELECTED INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AT THE INSTITUTIONAL PRICE; AND
• 51,790,100 ISSUE SHARES BY WAY OF PLACEMENT TO KOPERASI PERMODALAN FELDA MALAYSIA BERHAD AT THE INSTITUTIONAL PRICE,
(II) RETAIL OFFERING OF 28,120,000 SHARES COMPRISING:
• 14,060,000 ISSUE SHARES MADE AVAILABLE TO THE ELIGIBLE EMPLOYEES (AS DEFINED HEREIN) AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF THE BUSINESS OF MSM HOLDINGS AND ITS SUBSIDIARIES; AND
• 14,060,000 ISSUE SHARES MADE AVAILABLE TO THE MALAYSIAN PUBLIC;
AT THE RETAIL PRICE OF RM3.38 PER SHARE (“RETAIL PRICE”), PAYABLE IN FULL UPON APPLICATION AND SUBJECT TO REFUND OF THE DIFFERENCE, IN THE EVENT THAT THE FINAL RETAIL PRICE IS LESS THAN THE RETAIL PRICE,
SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS AND OVER-ALLOTMENT OPTION (AS DEFINED HEREIN). THE FINAL RETAIL PRICE WILL BE EQUAL TO THE LOWER OF:
(I) THE RETAIL PRICE; AND
(II) 97% OF THE INSTITUTIONAL PRICE,
SUBJECT TO ROUNDING TO THE NEAREST SEN.
MSM-NoticeOfProspectus (73KB).pdf
MSM-Cover to Page 182 (3.1MB).pdf
Discussions
4 people like this. Showing 50 of 3,862 comments
will government remove the sugar ceiling price for MSM and scrap the sugar subsidy ??
1 month ago
next 3 concerns of the government : 1) sugar ceiling price and subsidy, 2) Ron95 floating price, 3) re-implement of GST. Which one you think government will go ahead first and doesn't impact the citizen much.
1 month ago
Higher export prices positive for MSM
https://www.thestar.com.my/business/business-news/2024/10/01/higher-export-prices-positive-for-msm
1 month ago
Bullish pattern forming, high chance of a big spike soon. Fundamentally it's terrible lol. Newsflow, could be bad - war on sugar, PMX could tax sugar to discourage consumption + continue to cap sugar price at 2.85 to encourage consumption both at the same time 😎 that'd be a poor outcome for MSM
1 month ago
The gov may abolish the industry incentive to sugar players by removing ceiling price.
Let market forces determine its value.
1 month ago
Tomorrow will determine the trend of MSM
https://www.thestar.com.my/news/nation/2024/10/10/interactive-what-you-need-to-know-about-malaysias-upcoming-sugar-tax-hike
1 month ago
Yes PMX did it. Increase sugar tax on sugary drinks purportedly to wage war on sugar, but maintain price control at RM2.85 to have malaysian sugar cheapest in the world 🤣
1 month ago
The tax can divert to consumer, no worry on MSM but at the same time hope to halt certain peoples to less consumes sugar, eventually not to totally eliminate sugar users rather than reduce the number, in long term no effect on buisness will be as usual
1 month ago
A convincing break below 4 USD to ringgit will be a huge catalyst for MSM. Whether that happens sooner or a recovery in its exports remain to be seen
1 month ago
Seems like we could see a sweet turn for the MSM 😀
https://www.thestar.com.my/business/business-news/2024/10/21/will-msm-see-a-sweet-turnaround
1 month ago
Will MSM see a sweet turnaround?
IT wasn’t too long ago that MIDF Research had a target price of RM4.48 per share for MSM Holdings Bhd. That was in April 2024, when it was trading around RM3.30.
MIDF’s bullishness was based on several factors, including rectifying equipment problems at MSM’s Johor plant, which had hit the pause button.
With that sorted out, MIDF reckoned that MSM would lift the group’s sugar yield by ramping up its melting activities – a key process in sugar making –ahead of growing demand in Asia-Pacific countries.
Another factor cited by the research house was the price moderation of raw sugar, which is MSM’s main raw material.
Rumours of potential new shareholders also boosted sentiment on MSM shares then, including the reemergence of speculation that the Kuok group might be interested.
Alas, there were problems. No new shareholders came in and MSM fell back into the red.
Today, MSM trades at a mere RM1.25 per share and MIDF has since downgraded the stock to “neutral” with a target price of RM1.39.
So what changed so much in just six months?
A quick rewind to February 2024. MSM was the talk of the town then as the group finally returned to the black after more than eight quarters of losses.
It reported a net profit of RM42.87mil in the fourth quarter (4Q) of financial year 2023 (FY23), as its quarterly revenue jumped 40% to RM949.88mil.
MSM maintained its momentum into FY24, reporting a profitable 1Q despite a slightly lower revenue.
But this was when the research house lowered its target price to RM3.60 per share, revising downwards MSM’s earnings estimates, despite maintaining its “buy” call.
By the 2Q ended June 30, things went awry as the group posted a net loss of RM32.4mil despite an uptick in revenue.
MSM cited high input costs –mainly raw sugar, freight expenses and the weakened ringgit – as the main culprits.
MIDF flagged another issue, an inventory write-down, as MSM’s sugar prices struggled to compete with a surge of cheaper imported sugar from approved permit players.
1 month ago
Spills the ‘sugar’ on 2Q losses
Speaking to StarBiz 7, MSM group chief executive officer (CEO) Syed Feizal Syed Mohammad explains that after taking risk management steps to combat high raw sugar prices, the company had to absorb higher hedging costs in the 2Q due to prior hedging activities.
Syed Feizal is the fourth CEO of MSM since its parent company, FGV Holdings Bhd, listed in 2012.
“This (loss) is not going to be something permanent. You’ve got to pass through certain higher hedging done at that time – especially when raw sugar was doing fairly well in 2023, so you’re hedging for 2024.
“Nevertheless, we don’t lock up all our positions at a single price,” he says.
He explains that the group opted for gradual hedging to mitigate risks associated with sudden price changes.
However, he anticipates seeing results a bit later, potentially by the 4Q.
Gas, on the other hand, takes up 8% to 9% of the group’s cost.
“Petroliam Nasional Bhd is our direct supplier. We pay market prices. We don’t get any concessions,” he adds.
On freight issues, Syed Feizal notes that costs were higher for MSM in the 2Q and suggests that the government provide more logistics incentives for exports.
He explains that bulk breaking – dividing a large quantity of goods into smaller amounts – is more cost-efficient compared to container shipping.
However, in Malaysia, it’s the other way around as bulk breaking rates are higher.
“That should not be the case. The relevant ministries should look into how they can support industries to achieve more competitive logistics costs,” he adds.
Returning to profitability
Syed Feizal remains hopeful that MSM is heading back to profitability.
“The 4Q is a lot brighter and we are optimistic of getting back in the black for the full year.
“Opportunity lies in volume,” adds Syed Feizal, noting the revival of MSM’s Johor plant.
Managed by its subsidiary, Sugar Refinery (Johor) Sdn Bhd, the plant has faced ongoing issues since its inception.
Syed Feizal aims to see the Johor plant in the black again and contributing to group earnings, complementing the strong performance of the Prai plant.
“The Johor plant has a utIlisation rate of about 30% to 35%.
“So, there’s a lot of headroom in volume. Our strategy to support the ramp-up is to get to the export market,” he says.
The plan is to expand MSM’s export market from 15 to 25 countries.
MSM’s top five export destinations are all located within Asia Pacific, accounting for more than 60% of total exports.
MSM is seeking to have the Vietnam anti-dumping tariff lifted, for which Syed Feizal says discussions with that country’s government are underway.
“Vietnam accounts for 100,000 to 140,000 tonnes annually and we don’t want to miss that.”
MSM exported 242,077 tonnes of refined sugar in 2023, which will go up to 260,000 tonnes by the end of 2024, he says.
For next year, the target is set at 360,000 tonnes.
“Contributions will not just be largely from Prai, but Johor will start to contribute more as well.”
As improvements continue at the Johor plant, Syed Feizal aspires to see MSM with “two Prai plants” – highlighting two powerhouses at full force.
1 month ago
This counter really have to dare to sell dare to buy...dare to buy side I definitely played my part hehe. Dare to sell I only did it this round while missing out on last few rounds. I am left with 1/3, one more dip I have to start buying it back down...can't win it all, sell high buy high
4 weeks ago
@Kylie no target price for this counter, too volatile. If forced to however, it should be 1.7++ first round and if it's clear to $2 coupled with earnings recovery, I will just ride the wave.
However this counter dare to sell dare to buy...I sold heavily those few days, now I am buying back some. Prepared to buy down to $1 again
3 weeks ago
This counter is like casino….. the management is poor if you compared against Robert’s era.
3 weeks ago
Fair enough to say management is poor vs Robert's era. But it is for the poor management that here we are given a chance to buy it so low.
Their greatest obstacle is the legacy Johor plant. Felda should not have done it back then but it is already built and sunk in. Current CEO's focus on changing that is the right direction. Can't be faulted too much if he fails to turn it around 😅
Their 2nd obstacle is the way they hedge. Robert is famous for making more in directional bets on sugar futures than the factories could produce. MSM today hedges out of necessity so there'll always be a time lag effect. They are trying to take fewer directional bets, with an aim for stability and ultimately paying back some dividends to Felda.
3 weeks ago
That's what's happening to the business. This stock moves in an entirely different way. Because it is so tightly held and so illiquid, the share price action is clearly driven by sharks more than fundamentals. Definitely right to say it's a gambling stock - thats why I am here 😂
3 weeks ago
Yesterday sold at RM 1.31 with 5%. Small gain better than lose. Looking forward to buy again when drop more.
3 weeks ago
Hard to understand right? 1.40+ all of us are sellers, yet buying volume was there. Now who is selling it down? Always hard to understand
3 weeks ago
Msm 1.29
If substain 1.30 range long enough,then 1.50 above the tp.
4/11/24 2.18pm
2 weeks ago
@ UncleFollower: when government no support this counter can never go up. Right now, is just a pump and dump counter.
6 days ago
Erm I am actually still pretty happy w MSM. The last round the rapid crash heading towards 1.00 with no support was scary. Then bottom apparently found. Now hit together with everything else is normal. Ringgit hit so badly. There's no where to hide, other than cash and large caps. I would take this opportunity to buy those being hit and when I run out of bullets, holiday. Merry Xmas gais
3 days ago
so used to do it, SHBL, almost everyday. suddenly 1 day just die down. feeling very uneasy. hahaha. off course it get mouldy if idle for several days. hope they pump to 1.30 tomorrow😘😘😂
2 days ago
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