Analysts gave this stock a perfect 10 score! But what makes this
company so special? And what do they do and how do they do things
to keep them growing? First we need to analyse all the 4M’s
For those who are not familiar with the 4️M’s it is
Meaning (what does the company do and where is the revenuecoming from)
Moat (competitive advantage amongst other competitors) Management (how is the management doing things in the companyto grow the company)
Margin of safety (how much of a discount you can buy thiscompany with after calculating the intrinsic value)
The first M – Meaning
This company is dealing with mainly dealing with Tin Manufacturing
and Food & Beverage
Tin Manufacturing is involved in the manufacturing of various tins,
cans, and other containers. Food and Beverage are involved in
manufacturing and selling of milk and other related dairy products.
Main revenue contributor is their Food & Beverage segment which more
than 80% is exported mainly in West Africa, South-East Asia Region and
American Continent.
Majority of their revenue also derives from Malaysia but they are also
doing business in various countries such as Africa, Central America,
Europe, Malaysia, and Other Countries.
Second M – Moat
This company has a few main competitors as well such as TGUAN,
PERSTIM, SLP and DAIBOCI but what makes JOHOTIN up their game
compared to all the other competitors?
To remain competitive, the group have always maintained their prices
to their customers for as long as possible in order to keep their
existing customer and maybe even take other customers from other
competitors due to competitive prices that they offer.
to their customers for as long as possible in order to keep their
existing customer and maybe even take other customers from other
competitors due to competitive prices that they offer.
The Group continuously monitoring the prices of key raw materials,
expanding the pool of suppliers and customers whilst continuing to
establish long-term business relationship with the existing suppliers
and customers, expanding the existing business by enhancing the
Group’s strength and developing new products.
For F&B segment, the barriers to entry are mainly the relative high
capital investment to set up the manufacturing facilities, established
distribution channels, compliance with stringent safety standards and
strong research and development capabilities.
capital investment to set up the manufacturing facilities, established
distribution channels, compliance with stringent safety standards and
strong research and development capabilities.
It will be hard for new competitors to compete with JOHOTIN with their
competitive prices and strong business relationship with their existing
suppliers and customers.
competitive prices and strong business relationship with their existing
suppliers and customers.
Third M – Management
Things that management do to overcome the group’s challenges
Challenge (1) Shortage of labour supply, both local and foreign.
Resolution (1) Appointed several recruitment agencies to source for
new workforce and currently we are able to cope with the demands and
control over the increase in operational costs.
new workforce and currently we are able to cope with the demands and
control over the increase in operational costs.
Challenge (2) Higher maintenance costs are required for the existing
machineries.
Resolution (2) machineries were upgraded consistently as the older
machineries deteriorate and required higher maintenance costs with
newer machineries, productions are more consistent and capacities are
increased.
machineries deteriorate and required higher maintenance costs with
newer machineries, productions are more consistent and capacities are
increased.
The fourth M
Which is their Margin of Safety, this will be a heck of a
long one. We will be discussing more on their financials and also
calculate their intrinsic value as well as whether is this company
currently undervalued or overvalued at the moment.
Which is their Margin of Safety, this will be a heck of a
long one. We will be discussing more on their financials and also
calculate their intrinsic value as well as whether is this company
currently undervalued or overvalued at the moment.
Comment down below “Part 2” and I will make part 2 in the upcoming
days.
———— Check us out ————
WEBSITE • @12ingroup
FACEBOOK • @12Invest
INSTAGRAM • @12ingroup
TWITTER • @12_invest
#JOHOTIN
#TIN
#FnB
#12INVEST
Disclaimer:
All the views and opinions expressed in our post are for education and informational purposes only and it should not be considered as professional financial investment advice or buy/sell recommendations. We strongly encourage you to do your own research and take independent financial advice from a professional before you proceed to invest.
We make no representations as to the accuracy, completeness, correctness, suitability, or validity of any information on our Facebook Page/Group and will not be liable for any errors, omissions, or delay in this information or any losses and damages arising from its display or usage. All users should read the posts and analyze the information at their own risk and we shall not be held liable for any losses and damages.
https://klse.i3investor.com/blogs/12stocktalkeng/231181.jsp
