|
| |
Additional Listing Hints : Click here to modify the Visible Columns.
  core9design AMINVEST RESEARCH We maintain BUY on Malayan Flour Mills (MFM) with a higher fair value of RM1.33/share (vs. RM0.69/share previously). Our fair value of RM1.33/share is based on a fully diluted FY22F PE of 18x instead of FY21F originally. · We have assumed a higher PE of 18x vs. 15x previously as we believe that MFM would benefit from having Tyson Foods as a partner. MFM would be able to leverage on Tyson Foods’ global customer network. · Globe Newswire announced that Tyson Foods and Malayan Flour Mills have formed a partnership, in which Tyson Foods will invest 49% in MFM’s poultry division. The investment sum for the 49% stake was not disclosed. · We have not factored the disposal of the 49% stake in the poultry division in MFM’s FY22F net profit yet. We believe that any loss of earnings from the disposal of the 49% stake would be compensated by higher interest income (from the disposal proceeds) or lower interest expense (from the repayment of borrowings). · As at end-FY19, the poultry division’s gross asset value was RM1.0bil. We do not know the division’s liabilities. Assuming a price to gross asset value of 1.0x, the sale of the 49% stake in the poultry division would generate cash of about RM490mil. MFM would be able to use the cash to pare down borrowings, which stood at RM1.2bil as at end-FY19. · More importantly, Tyson Foods would be able to help boost the earnings of MFM’s poultry plant in Lumut by being an off-taker. MFM would be able to sell some of its poultry products at the Lumut plant to Tyson Foods, which has a global network of customers. · Currently, we forecast that MFM’s poultry division would break-even in FY21F after a loss of RM44.5mil in FY20E. We expect the poultry division to record an EBIT of RM23.6mil in FY22F. The poultry division recorded a loss before interest and tax of RM54.9mil in 9MFY20. · MFM’s poultry plant in Lumut started operations in late-FY19. We believe that the poultry plant is currently operating at an utilisation rate of 40% to 50%. Due to Covid-19, which has resulted in limited dine-in at restaurants, the plant suffered from a drop in poultry demand on FY20. The plant has a total production capacity of 280,000 birds per day. · We think that HORECA accounts for 60% of MFM’s poultry sales currently. We believe that MFM’s exposure to the live birds market has declined to 40% from 50% due to the commissioning of the poultry plant in Lumut in late-FY19. AMINVEST RESEARCH 11/02/2021 6:13 PM hooi the bleeding will continue even though Tyson take 45 %. no hope this dindings poultry. sell 11/02/2021 7:16 PM ChinaMade why use 2 accounts to comment? ur mistake is u put 45% takeover comment from both name.. lol ur funny level getting higher 11/02/2021 9:27 PM weh9168 This is a right strategy with the support from Tyson who own Mac Food ( supply to Mac Donald)will lend support to Dindings to take market share away Ayamas 11/02/2021 9:52 PM Snowpiercer I think at the end mfm will get much lesser than 420m. They will not meet the profit guarantee 12/02/2021 1:22 PM  Petronas According to the research house’s forecast, inflation is expected to turnaround but remain relatively benign at 1.7% this year, with the expectation of economic growth recovery. 13/02/2021 9:11 PM Snowpiercer Nothing to lose for Tyson....but.....for MFM no choice before it goes under 14/02/2021 2:54 PM core9design Of course it will go up @Penang123, dont believe these ppl wanna catch at low price. TP1.5-2.0 14/02/2021 6:42 PM  snwong13 . Surely it make very clear sense Tyson Food presence in MFM, when Tyson Food has a global presence! MFM poultry products can widen it's global marketplaces. Go longer term for handsome rewards . Good luck ! 14/02/2021 7:23 PM SIQ555 Huge and strong company like Tyson will not make an entrance in partnership without conducting their "due diligence", which includes innovations and future businesses. 15/02/2021 1:00 AM Pisangraja Going forward, Tyson will buy processed chicken from Dindings... 40mil birds per annum and growing. Dindings will benefit from the economies of scale and their new plant in Lumut will be fully utilized 15/02/2021 8:08 AM Pisangraja At 0.985 or mkt cap of 998m, Mflour shares are grossly under valued... based on Tyson's acquisition of 49% of Dindings for 420m, just a single subsidiary of Mflour is already valued at 857m. 15/02/2021 8:25 AM core9design Exactly @Pisangraja. This is hidden gem. Institutions/syndicates are just pushing down to collect at bargain prices. The chart looks good to continue rocketing up 15/02/2021 9:36 AM SIQ555 Tyson, massive corporation and listed in US, at approximately US65 pershare currently. Just need MFlour share price to move to US1 (momentarily adequate). 16/02/2021 2:28 PM cu29ok each time after u all mention break this price, break that price...then surely drop and drop. :( 22/02/2021 11:46 AM LiTech Penang123, do you have news that we do not have? How about sharing it with us? 23/02/2021 9:32 AM LiTech Penang123, we need crystal ball to see the future and not meatball to guess the future 23/02/2021 10:08 AM JH1985 Aminvest already put TP at 1.3x... sure will have some profit taking here and there plus global markets so bad this week, but have patience lah. 23/02/2021 12:46 PM Bigfoot It really depends on the Q4 results... not sure if you read through the details of their announcement on the partnership with Tyson. RM420 million is the best case scenario assuming they are able to meet the very aggressive profit target of FY22 and FY23, lots of caveat. Worst case scenario is they will only get RM125 million for 49% of the JV. This is the most attractive proposition for Tyson but it doesn’t look good on MFM. 23/02/2021 1:09 PM JH1985 I suppose thats the risk you take as an investor. If the deal goes through and MFM has Tyson's market channels, supply to Macfoods etc etc it will be a Rm2-3 share, where got 90sen for you to buy that time... current price ie laughably low at below net asset value. Having said that I believe they have big plans for their new plant hence the aggressive targets, currently super underutilized! 24/02/2021 12:22 PM CyberShot If you study klse properly, such company with jv will usually give bonus issue to reward shareholders. We are going through a hyper-inflation once vaccine available to global economy and definitely Mflour will have a good bite of profit going forward. Even without Bonus Issue, the share price should hit all time high within this year as there is no reason of not moving upward. See you all at the bank and have a great Mflour year with the OX 25/02/2021 9:48 AM Pisangraja Q4 report should be out anytime soon... hopefully, the results is better than Q3, to confirm that it’s has fully recovered from the negative impact of the pandemic and the business on the uptrend 26/02/2021 12:47 PM Pisangraja Dindings can easily expand its broilers farming and it has ample spare processing capacity ... it’s major weakness was its marketing expansion. With Tyson on board, there’s a ready demand for chicken meats 26/02/2021 12:54 PM Snowpiercer As of now, way overvalued.....the tie up with Tyson has revealed its weakness....highly indebted....not sure can meet the profit guarantee under the deal 26/02/2021 3:51 PM Eastern686 Mflour poultry business mostly make loss in more Q than making money Q, st2pid pembela ayam. 26/02/2021 6:56 PM LiTech Easterner686, this means that the Management made the right decision and this type of company will grow according to market requirement. Good business men or Management will know when to let go and this is what wise investors want to see. Those traditional management will usually hold tightly and end up more lost at the expense of all investors. Nokia CEO ended his speech saying this “we didn’t do anything wrong, but somehow, we lost”. I am fully confident that MFlour Management will give more good reports from now on and will allocate more fund to invest in this company. 27/02/2021 10:03 AM Eastern686 Whatever it is, poultry segment still reported losses big time this Q. Lousy laosai pembela ayam. 27/02/2021 10:28 AM LiTech Eastern686, I will take it as investment of this company future and not the past. If market already factored in this loss, it will not affect next week price. The company poultry segment will improve since Tyson is well known for poultry business. 27/02/2021 11:59 AM  |
|
