FIGURE 1: MALPAC HOLDINGS BERHAD
LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2019 annual report.
1.
GENERAL INTRO: MALPAC is one of the main oil
palm plantations in Malaysia.
2.
NOTABLE POINTS:
a. In
2019 report, main business segments include operation of oil palm plantations
and palm oil mills
b. The
company is involved in law suit which causes its plantation income to be
withheld by another party, so revenue or income from plantation segment is zero
c. For
the financial year 2019, the pre-tax loss was RM5.47 million compared with
RM3.41 million in the same period of preceding year. A significant portion of
the loss was accounted for by fair value loss on investment in quoted shares
held due to unfavorable stock market conditions.
d. In
the FYE 2019, the Group’s investment properties in Osaka, Japan were fully
occupied and have been generating gross rental yield of 4.30% per annum with
net of interest cost yield of 2.40% per annum. The Group will continue to be on
the lookout for more investment properties both locally and abroad.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (RM million): 0 million as reported in 2019 annual report, this is a low revenue
company.
b. SHARE
PRICE: from 2018-2020, share price has been decreasing from around RM1.20 to
RM0.80
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -6.93 to -4.5sen
d. FUTURE
POTENTIAL/PROSPECTS: share price expect to be stable in the next few years
e. CAPITAL
EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 0.126
million, around 0.06% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2019 financial year, MALPAC did not declare a dividend payout to
shareholders.
b. CONSISTENCY:
the dividend payout was not consistent, dividend paid to shareholders in last
five years (2014-2019) ranged from 0 to 10 sen per share.
c. DIVIDEND
PAYOUT RATIO: N/A
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2019 financial year, MALPAC achieved a low return of
shareholders’ equity, at -3.28%.
b. COST-TO-INCOME
RATIO: N/A
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive but quite low, around RM 0.249 million, equivalent
to RM 0.003 per share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are only 2 institutional
investors at top 30 major shareholders list, not including insurance companies and
investment funds. Its major shareholder are Lim Hong Liang (19.3%), Tan Chon
Sing @ Tan Kim Tieng (13.75%) and Advance Synergy Capital Sdn Bhd (10.72%).
Disclaimer:
The content of the blog posts are for sharing purpose only. Readers are
encouraged to carry out further research and analysis as well as follow up
latest update information before making any investment decisions.
Feel
free to “Like” or “Follow” my Facebook Page (大马股市分析 Malaysia Stock Analysis, https://www.facebook.com/%E5%A4%A7%E9%A9%AC%E8%82%A1%E5%B8%82%E5%88%86%E6%9E%90-Malaysia-Stock-Analysis-100684328044058
) to receive latest updates on new articles.
No comments:
Post a Comment