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.
http://louisesinvesting.blogspot.com/2020/01/comments-on-malpac-holdings-berhad-4936.html
