do research ya!

Summary from 14/08/2009 to 03/10/2023
Highest Price 4.7500 First Occurred on 11/08/2017

VWAP:1.8057 sampai kini ~ RM1.81 :)

usah lepaskan peluang terbaik untuk menyapu syer kawan pd harga ~1.80+/- kini....

retailers yg tak mampu hold, bermain kontra jual pd harga lelong, grab je lah

accumulate n wait for bonus syer macam bjfood, 1 existing share dapat 3/4 bonus syer. hahaha

a sudden jump to RM2.10 as per Public Invest latest forecast? fun to make money

countdown to another sudden rise kot? exciting time for KAWAN :)

Kawan Food Berhad - Recovery in Export Sales

PublicInvest
Publish date: Thu, 23 Nov 2023, 10:40 AM
Kawan Food Bhd (Kawan) reported a 25.9% YoY decline in 3QFY23 net profit to RM7.7m. After stripping off non-operating items such as forex gain, inventories write-off, write back of slow-moving inventories and fair value loss on financial assets, 3QFY23 core net profit stood at RM7.7m, +6.6% YoY. This was mainly driven by stronger export sales, primarily in North America and Asia. For cumulative 9MFY23, core net profit of RM18.6m was in line with our expectation but came in below consensus at 73% and 61% respectively. We maintain our FY23-25F earnings forecasts. We continue to like Kawan as we expect its growth to be supported by the resilient demand for frozen food, stronger flatbread export sales from its new export clients as well as new product launches. We maintain our Outperform call with a TP of RM2.10 based on 20x FY24F EPS.

3QFY23 revenue rose 10.3% YoY to RM79.2m, driven by stronger sales from export markets especially among the North America (+41.2% YoY) and Asia region (+17.8% YoY). The better performance was mainly due to the resumption in orders from its existing customers given the ease in inventory glut. On the other hand, local sales dipped marginally by 0.4% YoY from RM31.4m in 3QFY22 to RM31.3m in the current quarter.
3QFY23 core net profit increased by 6.6% YoY to RM7.7m, likely due to higher production efficiency from greater economies of scale given the stronger sales from export markets. This had resulted in a 3.6ppts improvement in Kawan’s GP margin to 33.8% (3QFY22: 30.2%).
Outlook. We continue to expect Kawan to post stronger QoQ results in 4QFY23, driven by a stronger demand from both local and export market. This is mainly due to seasonality factors which we believe should see a pick-up in local sales, further supported by the resumption in orders from its export clients and new product offerings. In addition, we think that frozen food demand will remain resilient as consumers may choose to dine-in at home giving the rising cost pressures. We are anticipating an improvement in margins on lower raw material costs and a stronger USD. Note that Kawan’s key raw material, wheat and CPO prices have declined by a YTD of c.30% and c.10% respectively.
Source: PublicInvest Research - 23 Nov 2023

good buy now/// :)
2023-12-22

Insider

KAWAN FOOD BHD buyback 110,400 shares from 1.870 to 1.880 on 22-Dec-2023.

2023-12-22

Insider

KAWAN FOOD BHD buyback 811,200 shares from 1.830 to 1.880 on 13-Dec-2023 - 21-Dec-2023.

2023-12-21

Insider

KAWAN FOOD BHD buyback 150,300 shares from 1.830 to 1.880 on 21-Dec-2023.

Rising Momentum
2024 should be a better year for Malaysia. While we expect slower global growth, we see green shoots in ASEAN, brightening its growth outlook. For Malaysia, we forecast GDP growth to be firmer (2024E: +4.4%; 2023E: +3.9%), while for equities, the tail-end of global monetary policy tightening, stable domestic interest rate outlook, economic transformation, and rising FDI momentum are the key catalysts. We also look forward to better corporate earnings growth. Our YE 2024 KLCI target is 1,610.

Bos tua dah mati, anak2nya mau jual kot?

Got take over offer ka?

Major HoldersCurrency in MYR
Breakdown
63.87% % of Shares Held by All Insider

KUALA LUMPUR: Shares in Hwa Tai Industries Bhd attracted investors' interest in early trade Thursday although the company has not made any major corporate announcements.

The biscuit manufacturer saw its share price surge 48.96%, or 23.5 sen to 71.5sen at 10.13 am. Year-to-date, it has risen over 30%.

The company announced on Oct 31 that its group chief executive director Datuk Soo Chung Yee acquired 3,000 shares in Hwa Tai in the open market at an average of 42.5 sen per share. He has a 2.115% stake in Hwa Tai.

Soo also acquired 60,000 shares from the open market on Oct 26 and another 16,000 shares on Oct 27.

In September, Hwa Tai announced that the company had embarked on a solar project with the installation of solar panels onto the roof of its main factory in Batu Pahat, Johor.

It said the solar project cost RM1.35mil which is financed by internally generated funds and an existing available hire-purchase facility.

In the first six months ended June 30, Hwa Tai posted a net loss of RM4.12mil, or loss per share of 5.51 sen on revenue of RM34.14mil.

<%-- for fixing scrollbar--%>
Save Print Back

8478 HWATAI HWA TAI INDUSTRIES BHD
Quarterly rpt on consolidated results for the financial period ended 30/09/2023
Quarter: 3rd Quarter
Financial Year End: 31/12/2023
Report Status: Unaudited
Submitted By:
Current Year Quarter Preceding Year Corresponding Quarter Current Year to Date Preceding Year Corresponding Period
30/09/2023 30/09/2022 30/09/2023 30/09/2022
RM '000 RM '000 RM '000 RM '000
1 Revenue 20,880 18,113 55,018 53,299
2 Profit/Loss Before Tax (1,958) (1,542) (6,079) (4,203)
3 Profit/(loss) attributable to ordinary equity holders of the parent (1,957) (1,552) (6,078) (4,212)
4 Net Profit/Loss For The Period (1,958) (1,542) (6,079) (4,203)
5 Basic Earnings/Loss Per Shares (sen) (2.62) (2.07) (8.12) (5.63)
6 Dividend Per Share (sen) 0.00 0.00 0.00 0.00
As At End of Current Quarter As At Preceding Financial Year End
7 Net Assets Per Share (RM) 0.3700 0.2115
Remarks:
You are advised to read the entire contents of the announcement or attachment.
To read the entire contents of the announcement or attachment, please access
the Bursa website at http://www.bursamalaysia.com

29/11/2023 07:00 AM


Ref Code: 202311293100156

Keep some. Bos dah mati. Mungkin anaknya mau jualkan hwatai macam apollo, oldtown, dll

New agung factor, 40-50sen by dec 2024. All the best

Short term target p/b value ~0.5 at least, 37sen or higher

My short term target, back to 70sen (IPO price) or higher

Share buyback mainly above 1.85, any price below this level, worth accumulating .

Accumulate in stages, potential target for acquisition by equity fund, and so forth

Satu pengajaran

Lambo Group’s external auditor expresses disclaimer of opinion | https://www.klsescreener.com/v2/news/view/1104271

Geng tangan ghaib. Ramai mati

Lambo Group’s external auditor expresses disclaimer of opinion | https://www.klsescreener.com/v2/news/view/1104271

Accumulate in stages

Next, kawan. :)

KUALA LUMPUR (Dec 18): Keynote Capital Sdn Bhd, controlling shareholder of Apollo Food Holdings Bhd, is confirmed to be exiting the group after Scoop Capital Sdn Bhd, the franchisee of Baskin-Robbins, proposed to acquire Keynote's entire 51.31% stake in the confectionery maker for RM238.08 million in cash.

Scoop Capital is purchasing the 41.05 million Apollo shares from Keynote — the investment vehicle of Singaporeans Liang Chiang Heng and his younger brother Liang Kim Poh — at RM5.80 per share, a 7.4% premium to the last closing price of RM5.40.

According to a filing to Bursa on Monday, while Scoop Capital is obliged to extend an unconditional mandatory takeover offer to acquire all the remaining 48.49% stake in the group at RM5.80 per share, it intends to maintain the listing status of Apollo on the Main Market of Bursa Malaysia.

“Accordingly, in the event that Apollo does not comply with the public spread requirement (at least 25% of shares held by public shareholders) as a result of the offer, the offeror (Scoop Capital) will, together with Apollo, explore other options of proposals within three months from the closing date or such extended timeframe as allowed by the relevant authorities, to enable compliance by Apollo with the public spread requirement,” the filing read.

“As at the date of this notice, no arrangements on the above have been made,” it added.


Apollo makes compound chocolates, chocolate confectionery products and layer cakes under its own “Apollo” brand for both the local and overseas markets.

Based on a trailing earnings per share (EPS) of 44.02 sen, Scoop Capital’s RM5.80 per share consideration for Apollo’s shares values the company at a price-to-earnings ratio (PER) of 13.18 times.

Kawan Food Bhd, which makes frozen food — ranging from paratha, spring roll, pastry, chapati, finger food, bakery and desserts — under the “Kawan”, “KG Pastry”, “Veat” and “Aman” brands, is trading at a PER of 22.34 times — based on Monday’s close of RM1.85 and a trailing EPS of 8.28 sen.

Meanwhile, Hup Seng Industries Bhd, which makes biscuits under the “Cap Ping Pong” and “Hup Seng Cream Crackers”, is trading at a PER of 14.32 times — based on a closing price of 78.5 sen and a trailing EPS of 5.48 sen.

Apollo said a share sale agreement has been entered between Scoop Capital and Keynote for the deal, with the share transfer to take effect via a direct transaction on Dec 19.

The announcement confirms a report in The Edge last Friday (Dec 15) that Chiang Heng and Kim Poh wanted to dispose of their 51.31% stake in Apollo under Keynote.

Scoop Capital — 90%-owned by Datuk Cheah See Yeong, while the remaining 10% is held by his spouse Datin Soon Gock Lan @ Soon Geok Lin — owns a 100% stake in Golden Scoop Sdn Bhd, which is the master franchisee for ice cream brand Baskin-Robbins in Malaysia and Singapore.

At Apollo's request, the counter, which climbed 49.2% year to date, was suspended from trading on Monday pending the release of the acquisition news. It will resume trading on Tuesday at 9am.

Keynote's Chiang Heng, 73, currently serves as Apollo’s executive chairman, while Kim Poh, 62, is the group's managing director. It was reported that with the pair of brothers advancing in age, coupled with the lack of a clear succession plan, rumours were abound of their interest in exiting the group.

Chiang Heng has been with Apollo since 1979 and was appointed as MD in 1996, followed by ascending to his current role in 1998. Kim Poh joined the group’s board in 1998, before assuming his MD role in 2017.

Apollo, a strong household brand in Malaysia, has been listed on the local bourse since 2000. The group has been consistently profitable and a regular dividend payer over the past two decades.

Most recently, the group’s net profit rose 5.15% to RM9.95 million for the second quarter ended Oct 31, 2023 (2QFY2024) from RM9.46 million a year earlier, underpinned by a higher gross profit margin.

Quarterly revenue was down 6.13% to RM65.99 million from RM70.3 million previously, mainly on the back of lower export sales.

For the six-month period ended October 2023 (1HFY2024), its net profit increased 25.37% to RM17.59 million from RM14.03 million previously. Half-year topline declined a marginal 1.15% to RM124.32 million from RM125.76 million previously.

Read also:
Apollo Food, likely a takeover target, to be suspended on Monday

Agung baru 2024-2029, pemegang syer kedua terbesar dalam bjasset

Golden era for bjasset

Mantap 64sen... 1 juta syer+++ trsnsacted

30sen.just the start. Sultan johor agung baru 2024... Buy3

Malaysia patut ikut cara China, delist sykt2 yg tak baik, dll.


The number of companies delisted from China’s stock markets are approaching a record high this year, with about half of them losing their listing status after languishing below par value.

Malaysia patut ikut cara China, delist sykt2 yg tak baik, dll.


The number of companies delisted from China’s stock markets are approaching a record high this year, with about half of them losing their listing status after languishing below par value.

Malaysia patut ikut cara China, delist sykt2 yg tak baik, dll.


The number of companies delisted from China’s stock markets are approaching a record high this year, with about half of them losing their listing status after languishing below par value.

Malaysia patut ikut cara China, delist sykt2 yg tak baik, dll.


The number of companies delisted from China’s stock markets are approaching a record high this year, with about half of them losing their listing status after languishing below par value.

Malaysia patut ikut cara China, delist sykt2 yg tak baik, dll.


The number of companies delisted from China’s stock markets are approaching a record high this year, with about half of them losing their listing status after languishing below par value.

Malaysia patut ikut cara China, delist sykt2 yg tak baik, dll.


The number of companies delisted from China’s stock markets are approaching a record high this year, with about half of them losing their listing status after languishing below par value.

Reasons why KAWAN might be a good investment:

Strong financial performance: KAWAN has shown consistent revenue and earnings growth in recent years, with an EPS growth rate of 29% over the past 3 years.
Dividend payout: KAWAN has a track record of paying out dividends to shareholders, offering a potential income stream.
Growth potential: The frozen food market is expected to continue growing in the coming years, which could benefit KAWAN.

no wonder share buyback is performed periodically...

I3investor: Price target analysis on I3investor suggests a potential range of RM2.34 to RM2.77 for KAWAN's share price in 2024.

biarkan ikan bilis jual dibawah harga IPO, geng sendiri sapu lagi banyak, terbijak :)

share buyback dan board members sapu syer... sudden surge anytime :)

Monday, 4 Dec 2023
5:14PM
DXN LSJ GLOBAL SDN. BHD. (345,000 units Acquired)
5:14PM
DXN LEONG BEE LING (345,000 units Acquired)
5:13PM
DXN DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS)
5:13PM
DXN LIM SIOW JIN (345,000 units Acquired)
5:13PM
DXN LIM SIOW JIN (345,000 units Acquired)
Friday, 1 Dec 2023
5:40PM
DXN DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS)
5:40PM
DXN LEONG BEE LING (351,700 units Acquired)
5:40PM
DXN LSJ GLOBAL SDN. BHD. (351,700 units Acquired)
5:40PM
DXN LIM SIOW JIN (351,700 units Acquired)
5:40PM
DXN LIM SIOW JIN (351,700 units Acquired)
Thursday, 30 Nov 2023
5:47PM
DXN DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS)
5:47PM
DXN LIM SIOW JIN (98,000 units Acquired)
5:47PM
DXN LEONG BEE LING (98,000 units Acquired)
5:47PM
DXN LSJ GLOBAL SDN. BHD. (98,000 units Acquired)
5:47PM
DXN LIM SIOW JIN (98,000 units Acquired)
Wednesday, 29 Nov 2023
6:15PM
DXN DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS)
6:15PM
DXN LIM SIOW JIN (292,300 units Acquired)
6:14PM
DXN LSJ GLOBAL SDN. BHD. (292,300 units Acquired)
6:14PM
DXN LEONG BEE LING (292,300 units Acquired)
6:14PM
DXN LIM SIOW JIN (292,300 units Acquired)
Monday, 27 Nov 2023
6:28PM
DXN DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS)
6:28PM
DXN LSJ GLOBAL SDN. BHD. (224,600 units Acquired)
6:28PM
DXN LIM SIOW JIN (224,600 units Acquired)
6:27PM
DXN LIM SIOW JIN (224,600 units Acquired)
6:27PM
DXN LEONG BEE LING (224,600 units Acquired)
Tuesday, 7 Nov 2023
5:54PM
DXN 1,457,200 shares purchased into treasury

From To Type No. of Shares Min Price Max Price
02-Nov-2023 02-Nov-2023 Buyback 30,000 0.665 0.675
01-Nov-2023 01-Nov-2023 Buyback 200,000 0.660 0.665
31-Oct-2023 31-Oct-2023 Buyback 189,000 0.655 0.675
30-Oct-2023 30-Oct-2023 Buyback 670,200 0.660 0.680
27-Oct-2023 27-Oct-2023 Buyback 190,000 0.670 0.685
26-Oct-2023 26-Oct-2023 Buyback 178,000 0.660 0.675
26-Oct-2023 02-Nov-2023 Buyback 1,457,200 0.655 0.685

dividend stock

25-Oct-2023 15-Nov-2023 DIVIDEND Second Interim Dividend RM 0.0090
28-Jul-2023 11-Aug-2023 DIVIDEND First Interim Dividend RM 0.0080

Name Details of Changes
Date Type No. of Shares Price
DATUK LIM SIOW JIN 30-Nov-2023 Acquired 345,000 0.651
DATUK LIM SIOW JIN 29-Nov-2023 Acquired 219,600 0.660
DATUK LIM SIOW JIN 28-Nov-2023 Acquired 132,100 0.666
DATUK LIM SIOW JIN 27-Nov-2023 Acquired 98,000 0.663
DATUK LIM SIOW JIN 24-Nov-2023 Acquired 292,300 0.668
DATUK LIM SIOW JIN 23-Nov-2023 Acquired 91,000 0.672
DATUK LIM SIOW JIN 22-Nov-2023 Acquired 133,600 0.659
DATUK LIM SIOW JIN 22-Sep-2023 Acquired 769,100 0.689
DATUK LIM SIOW JIN 21-Sep-2023 Acquired 169,700 0.690
DATUK LIM SIOW JIN 18-Sep-2023 Acquired 115,000 0.699
DATUK LIM SIOW JIN 15-Sep-2023 Acquired 190,600 0.700
DATUK LIM SIOW JIN 14-Sep-2023 Acquired 90,000 0.704
DATUK LIM SIOW JIN 13-Sep-2023 Acquired 684,600 0.699
DATUK LIM SIOW JIN 12-Sep-2023 Acquired 1,863,900 0.694
DATUK LIM SIOW JIN 11-Sep-2023 Acquired 60,000 0.685
MISS ONG HUEY MIN 07-Sep-2023 Acquired 20,000 0.705
MISS ONG HUEY MIN 06-Sep-2023 Acquired 25,000 0.700
MISS ONG HUEY MIN 05-Sep-2023 Acquired 25,000 0.695
MISS ONG HUEY MIN 30-May-2023 Acquired 20,000 0.650
MISS ONG HUEY MIN 29-May-2023 Acquired 10,000 0.655
MISS ONG HUEY MIN 26-May-2023 Acquired 20,000 0.645
MR TEOH HANG CHING 18-May-2023 Others 830,000 0.700
MR TEOH HANG CHING 18-May-2023 Others 39,000 0.700
MR TEOH HANG CHING 18-May-2023 Others 36,000 0.700
DATUK NORIPAH BINTI KAMSO 18-May-2023 Others 200,000 0.700

Performance has been driven by a number of factors, including:

Strong financial results: DXN has reported solid earnings growth in recent quarters, thanks to rising demand for its health and wellness products.
Expansion into new markets: DXN is actively expanding into new markets, such as Peru, which has boosted its growth prospects.
Positive analyst sentiment: Most analysts covering DXN have a buy rating on the stock and believe that it has further upside potential.

Source: maybank investment

Visiting DXN China
We came away from our recent visit to DXN’s Ningxia, China manufacturing facility feeling positive. This is premised on the group’s clear strategies in pursuing new markets in China for longer-term growth, strong product innovation for export markets and use of automation in its production lines to minimise cross contamination and its reliance on labour. Our earnings estimates, BUY call and TP of MYR0.90 (on 11x FY24E PER) are unchanged.

2024, ramai dijangka masak kat rumah... frozen foods senang dimasak, jualan dijangka naik lagi

KWNF Historical Data
Time Frame
Monthly
Download Data
01/01/2021 - 12/26/2023
Date Price Open High Low Vol. Change %
12/01/2023 1.840 1.880 1.880 1.810 131.40K -2.13%
11/01/2023 1.880 1.860 1.920 1.840 6.37M +0.53%
10/01/2023 1.870 1.800 1.900 1.770 9.25M +3.89%
09/01/2023 1.800 1.750 1.840 1.740 3.26M +2.27%
08/01/2023 1.760 1.860 1.910 1.680 5.78M -4.86%
07/01/2023 1.850 1.910 1.980 1.810 926.00K -2.63%
06/01/2023 1.900 1.980 1.990 1.810 1.58M -5.00%
05/01/2023 2.000 2.100 2.220 1.950 2.61M -3.85%
04/01/2023 2.080 2.130 2.180 2.080 606.90K -1.89%
03/01/2023 2.120 2.190 2.220 2.080 2.96M -2.75%
02/01/2023 2.180 2.200 2.280 2.120 2.23M -1.80%
01/01/2023 2.220 2.220 2.400 2.160 2.98M 0.00%
12/01/2022 2.220 2.210 2.240 2.050 4.61M +1.37%
11/01/2022 2.190 2.180 2.310 2.090 4.82M -0.45%
10/01/2022 2.200 2.150 2.410 2.100 9.86M +2.33%
09/01/2022 2.150 2.170 2.300 2.070 8.52M -0.92%
08/01/2022 2.170 1.900 2.190 1.790 9.02M +14.81%
07/01/2022 1.890 1.660 1.930 1.640 3.97M +13.17%
06/01/2022 1.670 1.690 1.820 1.640 3.00M -1.18%
05/01/2022 1.690 1.790 1.830 1.650 4.15M -5.06%
04/01/2022 1.780 1.630 1.800 1.600 4.20M +8.54%
03/01/2022 1.640 1.650 1.670 1.470 6.10M 0.00%
02/01/2022 1.640 1.470 1.700 1.450 5.27M +12.33%
01/01/2022 1.460 1.680 1.680 1.450 2.25M -10.98%
12/01/2021 1.640 1.600 1.690 1.550 1.19M +2.50%
11/01/2021 1.600 1.770 1.790 1.580 2.75M -9.60%
10/01/2021 1.770 1.810 1.850 1.740 3.07M -4.32%
09/01/2021 1.850 1.810 1.900 1.780 6.01M +2.78%
08/01/2021 1.800 1.880 1.950 1.760 4.11M -4.26%
07/01/2021 1.880 1.970 2.000 1.850 2.54M -4.08%
06/01/2021 1.960 2.070 2.160 1.940 5.10M -4.85%
05/01/2021 2.060 2.050 2.190 1.860 7.41M +0.98%
04/01/2021 2.040 1.850 2.060 1.800 9.04M +9.68%
03/01/2021 1.860 2.120 2.120 1.830 6.98M -12.26%
02/01/2021 2.120 1.940 2.150 1.740 18.65M +9.84%
01/01/2021 1.930 2.140 2.180 1.890 9.39M -7.21%

Date Price Open High Low Vol. Change %
12/01/2023 0.64 0.65 0.67 0.63 2.04M -1.54%
11/01/2023 0.65 0.67 0.69 0.64 35.17M -2.26%
10/01/2023 0.67 0.68 0.69 0.61 89.56M -2.21%
09/01/2023 0.68 0.70 0.70 0.67 29.49M -2.16%
08/01/2023 0.69 0.75 0.75 0.68 86.04M -6.71%
07/01/2023 0.75 0.74 0.77 0.70 169.43M +2.05%
06/01/2023 0.73 0.65 0.75 0.64 157.55M +10.61%
Highest
0.77
Change %
-3.03
Average
0.69
Difference
0.16
Lowest
0.61

Initiate Coverage on DXN With An Add Call and TP of RM0.85
We initiate coverage on DXN Holdings Berhad (DXN) with an Add call and a GGM-based TP of RM0.85 (FY26F ROE of 27%, COE of 12% and 4% long-term growth). We like DXN for its i) globally diversified operating markets, with a solid 4.6m direct-selling active member base, ii) integrated supply chain with superior scale economies and margins, as well as iii) extensive product portfolio, driving our strong 3-year EPS CAGR of 15% (FY23- 26F). At our TP, DXN trades at an undemanding 11.1x CY24F P/E, a 20% discount to its peers, which we think is justified given its higher frontier markets exposure that generally carry a higher country risk premium, while offering attractive dividend yields of 5-6%.

Superior Profit Margins Driven by Its Vertically Integrated Structure
In our view, DXN’s competitive edge is its highly vertically integrated business model, allowing it to conduct key operations in-house vs. its peers (Fig 25). Thus, DXN was able to manufacture 327 own brand products (72% of total stock-keeping units) in-house that accounted for 90% of its direct-selling products sold as at FY23 (vs. peers’ c.23-70%). Hence, DXN was able to achieve superior gross margins of 82.9-85.7% in FY19-23 (vs. peers’ average of 20-74%, Figs 36 and 37) as it benefitted from operational synergies.

Backed by Its Robust Global Network and Scalable Incentive Model
DXN also has a vast network of 4.6m active members in over 180 countries as at Aug 23, with its member base growing at a CAGR of 14% over FY19-23, far outpacing its peers. We believe this illustrates the scalability of DXN’s direct-selling model. This is powered by its one-of-a-kind “One World One Market” incentive scheme (no upfront or annual fees, product sales-driven model across all markets) and digital infrastructure that integrates its physical, online and back-end global operations (sales ordering, tracking and commission pay-out, Fig 35). We view this as a differentiating factor for DXN, as it is able to operate on a global scale with low capex and low marketing costs (2-4% of its annual revenue budget).

Growth Strategies Driving Its Strong 3-year EPS CAGR of 15%
We project DXN posting a 13% revenue and 15% EPS CAGR over FY23-26F, driven by: i) our active member CAGR forecast of 4.2% and revenue per active member CAGR of 8.1%, ii) its high-growth markets expansion, iii) new high-margin product launches, and iv) price hike exercises, resulting in a recovery in EBITDA margins in FY24-26F (31.3-31.7%), from FY23 (31.0%). Key re-rating catalysts are higher membership growth and margin expansion on lower input costs. Key downside risks are adverse regulatory changes affecting product sales and profit repatriation, and weaker consumer sentiment.

Source: CGS-CIMB Research - 10 Nov 2023

DXN is trading at attractive valuation despite the robust earnings growth and sector-leading profit margins on offer.

DXN Holdings Bhd - Key Takeaways From China Investor Tour

sectoranalyst
Publish date: Wed, 06 Dec 2023, 11:41 AM
We remain positive on DXN post our visit to its facilities in China, which comprise its large-scale raw material cultivation and manufacturing sites.
DXN’s China operations are gearing up to enter China’s growing FMCG markets, while laying the groundwork for a local direct-selling licence.
Retain Add with a TP of RM0.85 (undemanding 11.1x CY24F P/E) with attractive div. yields of 6% and strong 3-year EPS CAGR of 15% (FY23-26F).
A Strategic Location That Would Help Drive the Next Leg of Growth
In Nov 23, we participated in an investor tour to DXN Holdings Bhd’s (DXN) manufacturing (Fig 1) and cultivation facilities (Fig 2) in Ningxia, China (DXN Ningxia). The event provided us with an on-the-ground perspective on DXN’s operational backbone, which is critical to its global direct-selling business. As a key raw material (i.e. Spirulina and Mycelium) production base and an export hub, DXN Ningxia houses its largest Spirulina farm (60% capacity for export) and its manufactured own products (Fig 3) are already exported to up to 20 operating countries (with 30 more in the pipeline), according to management. In addition to generous subsidies and incentives from the local government, DXN Ningxia has access to cheap raw materials and a favourable climate for its Spirulina farming yields. Its customised equipment for mass production of Mycelium liquid spawn (key to its cultivation) and biotechnology innovations to advance its Mycelium variant could help to boost yields and operational efficiency, in our view. While the facility is not operating at full capacity, we believe this represents a strategic readiness for future growth phases and would drive margin expansion once it scales up (FY24-26F GP margin: 83%).

Future Growth Plans to Further Penetrate Into China Market
Management said DXN established its presence in China in 2015 with an aim to secure a local direct-selling licence, which has stringent requirements, including at least 3 years of track record of domestic trading business (DXN China is currently in its third year). It expects to file the licence application in the next 2-3 years. According to TMO Group (a global ecommerce agency), the size of China’s direct sales market is expected to exceed c.RM200bn in 2023F. Meanwhile, with the completion of its liquid beverage factory in Jul 2023, DXN Ningxia has started to produce its high-margin ready-to-drink health product series (Figs 8-11) to venture into China’s fast-moving consumer goods market in 2024F (launching in Hangzhou, Chengdu and Xinyang cities) as a means to build initial brand awareness and subsequently export to its other operating countries, management said.

Reiterate Add With An Unchanged GGM-based TP of RM0.85
We retain our Add call on DXN, with a TP of RM0.85 (FY26F ROE of 27%, COE of 12% and 4% long-term growth). We believe DXN’s current valuation is undemanding at 8.5x CY24F P/E (38% discount to its overall peers’ 10-year average mean; Fig 4) given its superior scale economies and margins driving a strong 3-year EPS CAGR of 15% (FY23- 26F; Fig 5), while offering attractive dividend yields of 5-6%. Re-rating catalysts are higher membership growth and margin expansion. Key downside risks are adverse regulatory changes affecting sales and profit repatriation, and weaker consumer sentiment.

Source: CGS-CIMB Research - 6 Dec 2023

free float tak banyak... bila terbang, sangatlah laju :)

Direct Deals

Summary from 19/05/2023 to 07/08/2023
Highest Price 0.7350 First Occurred on 19/05/2023
Lowest Price 0.7000 First Occurred on 23/06/2023
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