Basically, flexible packaging is so pervasive in our daily lives. As an example, the laundry detergent had from, a once upon a time in tub containers, embraced flexible packaging in the form of refillable packs and in the same time responding to the social calling for environmental conservation. I believe it might be the potential customers for Tomypak :)

Sharing is caring :) Is good that we all together discuss and share any good or bad news. As long as got prove and valid source :P

Thanks, ozzie75 :)

@Ndrew, You're most welcome. I don't have Dropbox :( Perhaps I email you and you post it here? Basically it just stated what I mentioned above that Tomypak is one of the stock under "The 100 Bursa MidS companies selected under Phase 1".

I have the full report of "Launching of Mids Scheme" that prepared by CIMB. Not too sure how to upload here :( Anyway Tomypak is one of the stock under "The 100 Bursa MidS companies selected under Phase 1" :)

https://www.sc.com.my/post_archive/mids-research-scheme-to-spur-vibrancy-of-mid-and-small-cap-plcs-enhancing-investor-interest/

Tomypak is one of the stock under "The 100 Bursa MidS companies selected under Phase 1" :)

@Kim Yi Chia, I hold mother only. As I prefer to enjoy the dividend and expose to lesser risk. Warrant is trade at 26% premium now. I used to hold Latitude in 2015 and Gadang in 2016. This year main focus is Tomypak. I have screen through few stocks. But I can't really forecast their future eps etc. I need more time to study and understand it to forecast their future eps. Value investing is the strategy I prefer when invest a company. More understand a company will give you confident to invest at huge amount of money. It tells you what price is safe to buy in and good to take profit :)

@rocky77, don't angry. Take it easy. You should thanks Nigel Foo instead. I'm happy to accumulate more Tomypak at lower price :) Time and financial result will prove it. Tomypak need full of patience and trust to enjoy the fruit :P

@Haha123456

Effect of Share Split and Bonus Issue for Tomypak (For illustrative purposes only):
Assumed no. of Shares held is 1,000 unit and 5-day VWAMP is RM 2.50, Total Value RM 2.50;
After the Proposed Share Split, no. of Shares held is 2,000 unit, market price per share is RM 1.25, Total value RM 2.50;
After the Bonus Issue, no. of Shares held is 2,500 unit, market price per share is RM 1, Total value RM 2.50;

In short, Number of unit from 1,000 unit to 2,500 unit and share price from RM 2.50 to RM 1.00.

Effect of Share Split and Bonus Issue for Tomypak warrant (For illustrative purposes only):
Assumed no. of Shares held is 1,000 unit and 5-day VWAMP is RM 1.00, Total Value RM 1.00;
After the Proposed Share Split, no. of Shares held is 2,000 unit, market price per share is RM 0.50, Total value RM 1.00;
After the Bonus Issue, no. of Shares held is 2,500 unit, market price per share is RM 0.40, Total value RM 1.00;

In short, Number of unit from 1,000 unit to 2,500 unit and share price from RM 1.00 to RM 0.40.

@Haha123456

Same effect for both mother and warrant:
Share unit x 2.5;
Share price / 2.5;

Thanks for sharing it, R40s :)

Yup. Still entitled dividend + share split + bonus issue now.

I believe they might wanna create panic sell. Who knows they collect secretly? Time and financial result will prove the fact. This so called analysis research report just a joke for me. It seems like professional and it looks like professional but it is NO. Don't forget latest financial result shown increase in demand on both local and oversea market. Provided lower tax rate 16%. It will definitely given better net profit margin.

Time will prove it :) Patient is the key to success. I will continue look for next "Tomypak" while waiting Tomypak to show its real power :P

Same effect for mother and warrant.
Share unit x 2.5;
Share price / 2.5;

For 2 sen dividend:
Ex-date on 31 May 2017;
Entitlement date on 2 June 2017;

Good financial result for me. Increase sales, revenue, improve cost of production and lower tax rate. Pbt improve a lot. Dividend still 2 sen even though almost 50% share more in 2017Q1. Up to 2017Q1, Company have spend more money at construction for new factory and purchase machine etc. Looking positive towards 2017Q2.

Prospects
Going forward, the Group will continue to focus on its core business of manufacturing and marketing
of flexible packaging materials. The Group will continue to leverage and build on its strong reputation
in the market as a consistently reliable partner delivering quality packaging materials to its wide ranging
customers competitively.
With the completion of the new plant at the end of March 2017, the full operation of more advance and
efficient printing and lamination machines in second quarter of 2017, the impending comprehensive
realignment of both existing and new plant as well the upgrading of all supporting functions, the Group
expects performance to improve.

For the 3 months period ended 31 March 2017, the Group achieved a turnover of RM53.92 million
compared to RM51.17 million for the preceding quarter, an increase of 5.37%. This was mainly
attributed to the increase in demand from both local and overseas customers.
The Group however reported a lower pre-tax profit of RM6.68 million compared to a pre-tax profit of
RM7.36 million in the preceding quarter, a reduction of 9.3%. This was mainly due to the Group
recognising foreign currency loss of RM0.19 million in the current quarter compared to foreign currency
gain of RM1.09 million in the preceding quarter.
The Group recorded profit after tax of RM6.25 million compared to profit after tax of RM6.26 million
in the preceding quarter, a very marginal decline of 0.24%. The Group enjoyed lower effective tax rate
in the current quarter compared to the preceding quarter due to the higher reinvestment allowances in
year 2017.

Review of Performance:
For the 3 months period ended 31 March 2017, the Group achieved a turnover of RM53.92 million
compared to RM51.36 million for the same period last year, an increase of 4.98%. This was attributed
to the increase in demand from both local and overseas customers.
The Group recorded a higher pre-tax profit of RM6.68 million against the pre-tax profit of RM4.66
million in the previous corresponding period. This increase was mainly due to :
a) the increase in the demand from customers;
b) improved cost of production in this quarter as compared to the 1st quarter of previous year;
c) the Group recognised lower foreign currency loss of RM0.19 million compared to RM0.71 million
in the previous corresponding period.

Tomypak just released latest financial result, 2017Q1 and declare 2 sen dividend.

All resolutions have been approved with 100% agree by shareholders. Include share split and bonus issue. Looking forward entitlement within two weeks time.

Good thing is Tomypak has start to draw attention from Fund Manager :) Tomypak management also show confident toward its expansion plan.

I just highlight some important point of views:
a. Tomypak is on its way to doubling production capacity with the commencement of its latest production line at its new facility in Senai, Johor;
b. The higher capacity is said to drawing investor interest to Tomypak as it is poised to see strong earnings growth moving forward;
c. New production line/ new printing line - with an annual capacity of 5,000 tonnes started commercial operations last month;
d. An additional laminating line and a firm casting line will be installed towards the fourth quarter;
e. When fully commissioned, the facility is expected to have an estimated production capacity of about 16,000 tonnes a year with an operational space of about 265,000 sq ft or could exceed 16,000 tonnes as future production lines could have higher capacity than the first line, possibly 7,000 - 8,000 tonnes;
f. Tomypak's existing plant in Tampoi, Johor has a capacity of 19,000 tonnes (old and can run at only 60-70% of their rated capacity) a year and a build-up area of 150,000 sq ft;
g. Tomypak is also expected to deliver higher profit margin moving forward with the new and more advanced production lines are more efficient with higher output and automation;
h. Reinvestment allowances (future effective tax rate to 16-18% from more than 20% last year) of 60% in respect of qualifying capital expenditure. The indicative capital expenditure is expected to be about RM 125 million;
i. Tomypak is confident the Senai facility's new capacity will be readily taken up by customers;
j. Tomypak could see strong demand once the Nestle group opens its global procurement hub in Malaysia (launch early this year in Selangor);
k. Estimates the line could potentially have more than a 40% impact on the company's bottom line;
l. On average, it has been generating revenue of about RM 16,400 for each tonne of production;

Focus Malaysia has a full page article regarding "Tomypak's higher capacity to spur growth". Feel free to have a read and can get better understanding about Tomypak expansion plan.

@R40s, I'm referring based on Page 2 of file below, http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=78771&name=EA_GA_ATTACHMENTS

Let me know if I misunderstanding it.
Thanks :)

@hero666,

Share split and bonus issue won't impact much for dividend paid out.

The Proposed Share Split and Proposed Bonus Issue are not expected to have any material effect on the earnings of Tomypak Group for the FYE 31 December 2017. However, there will be a corresponding "dilution in the EPS" of Tomypak Group as a result of the increase in the number of Shares upon the completion of the Proposed Share Split and Proposed Bonus Issue.

eg. Dividend reduce from 10 sen to 8 sen but dividend paid increase (RM10.94 million in 2015 vs RM12.06 million).

Even Tomypak given "lesser sen" as dividend after share split and bonus issue. But shareholders have more units in hand now.

The most important still the EARNINGs of Tomypak Group this year.
I strongly believe Tomypak will earn more this year through expansion plan and the dividend paid will increase as well.
Tomypak Group’s dividend policy of distributing at least 40% of the Tomypak Group’s net profit for the year to shareholders :)

@Haha123456

Effect of Share Split and Bonus Issue for Tomypak (For illustrative purposes only):
Assumed no. of Shares held is 1,000 unit and 5-day VWAMP is RM 2.50, Total Value RM 2.50;
After the Proposed Share Split, no. of Shares held is 2,000 unit, market price per share is RM 1.25, Total value RM 2.50;
After the Bonus Issue, no. of Shares held is 2,500 unit, market price per share is RM 1, Total value RM 2.50;

In short, Number of unit from 1,000 unit to 2,500 unit and share price from RM 2.50 to RM 1.00.

Effect of Share Split and Bonus Issue for Tomypak warrant (For illustrative purposes only):
Assumed no. of Shares held is 1,000 unit and 5-day VWAMP is RM 1.00, Total Value RM 1.00;
After the Proposed Share Split, no. of Shares held is 2,000 unit, market price per share is RM 0.50, Total value RM 1.00;
After the Bonus Issue, no. of Shares held is 2,500 unit, market price per share is RM 0.40, Total value RM 1.00;

In short, Number of unit from 1,000 unit to 2,500 unit and share price from RM 1.00 to RM 0.40.

@Haha123456, you most welcome. Most probably same day with agm or end of May. Anyway Tomypak is good for long term investment.

@Haha123456,

For newbie would like to join the Tomypak journey, I will advice can enter price based on Tomypak's management Share Buy-Back as a reference price. It is definitely a fundamental strong company for long term investment. At current price, it still look reasonable for me.

You can wait for upcoming financial result before make your decision.

Anyway invest at own risk and feel free to discuss if have any inquiry :)

@hero666, once shareholder approve share split and bonus issue at upcoming agm, Tomypak management will announce corresponding EX-date and Entitlement date. The share price depend on the Entitlement Date later.

The adjusted market price of the Subdivided Shares is set based on the 5-day Volume Weighted Average Market Price (“VWAMP”) of the Shares up to and including the LPD per Share,

@ozzie75, thanks for your correction :P

After share split and bonus issue:
Stage-1 @ 2017, RM 3++; >> Adjusted RM 1.2++
Stage-2 @ 2018, RM 4++; >> Adjusted RM 1.6++
Stage-3 @ 2021, RM 6++; >> Adjusted RM 2.4++

@MamaCat, If everything run smooth and follow as schedule.
It should be around:
Stage-1 @ 2017, RM 3++;
Stage-2 @ 2018, RM 4++;
Stage-3 @ 2021, RM 6++;

Hope it helps.

I have to wait for another 20 month to harvest Tomypak's fruit :) It is a long journey. While waiting, can explore other potential stock too :) Hopefully everything is running smooth without any delay.

Below is my forecast for upcoming 2017Q1 financial result:

Good things:
1. Revenue increase;
2. Increase in local and export sales;
3. Better wastage control and improved operations efficiency;
4. Higher profit margin;

Bad things:
1. Lower foreign currency gain (a weaker MYR versus the USD);
2. Increase in raw material costs;
3. Higher global crude oil prices;

Forecast eps will be around 3 sen (assume net profit margin range from 8-10%).
The financial result will be much better and significant improve at 2017Q2 onward :)

Mr LIM HUN SWEE is the Executive Director of JOHORE TIN BERHAD and TOMYPAK HOLDINGS BERHAD. Hopefully Tomypak can follow uptrend like JOHOTIN under Mr Lim's management :)

Below is the financial report of Nestle (Major customer of Tomypak)

“For the first quarter ended 31 March 2017, the Group increased its revenue by 4.4% (+RM58 million) compared to Q1 2016. Both Domestic and
Exports contributed to this good sales growth. The commendable domestic performance (+4.7%) was underpinned by strong marketing and
promotional supports as well as the new base created by new products introduced in the last two years that continue to benefit the Group. The Exports,
after the good turnaround in 2016 continue to deliver a solid performance in Q1 2017 (+3.6%).”

Both Domestic and Exports contributed to this good sales growth of Nestle should positive impact of Tomypak 2017Q1 result also.

@R40s, thanks a lot for your knowledge sharing. Give you a LIKE :)

For this FY 2016, the Tomypak Group registered slightly lower revenue of RM210.94 million against RM214.10 million achieved in the prior year, a marginal decrease of 1.5%.

However, major customers from local and export market are increase around 10% in 2016.
Demand from major customers increase should have positive impact on Tomypak expansion plan.

I believe Tomypak might lose some minor customers from local and oversea which more concerns regarding price rather than quality etc.

@omgimnoob, I believe it will effective FY 2017 onward.

"In addition, with a larger and better organised warehousing space supported by the improved infrastructure, the Tomypak Group will also be able to completely eliminate the need for external storage space currently leased from third parties due to a severe lack of space currently to store our inventory of raw materials and finished goods at the Tampoi factory."

"The realignment plan to improve the overall operational efficiencies of both plants are being finalised and will be rolled out progressively till the end of FY 2017."

Regarding paper packaging, you can try to email Tomypak IR regarding your concern or ask them during upcoming agm. As far as my understanding/experience, they quite helpful regarding investor's concern. I believe the new machine can't use for paper packaging. They have lots of existing paper packaging company in market also.

"The products manufactured and marketed by TFPSB are primarily for the food and beverage companies who use these printed, laminated and metalised packaging materials either in roll or bags form, to pack their final products such as sauces, seasoning, noodles, beverages, oil as well as snacks.

The main categories of products are generally divided into the following:
a) Foil, which generally are made for the sauce, seasoning, snacks and beverage products;
b) Metallised, which are made for the noodle, seasoning, beverage and oil products; and
c) General, which are primarily made for the noodle, oil, seasoning and beverage products."

For newbie would like to join the Tomypak journey, I will advice can enter price based on Tomypak's management Share Buy-Back as a reference price. It is definitely a fundamental strong company for long term investment. At current price, it still look reasonable for me. Anyway invest at own risk and feel free to discuss if have any inquiry :)

We can't control or manipulate the share price of a company.
We can only invest rely on whatever information we get from Bursa Announcement of Tomypak :)

What we discuss above are assumed expansion plan success and everything is running smooth and follow schedule ^.^

However, we still have to bear in mind of any other unforeseen circumstances.

Cheer ^.^

@R40s, glad that can have a discussion with you regarding Tomypak and Tomypak warrant future outlook :) I do agree with what your explanation in detail. It makes sense to me. I believe upcoming financial result will prove it further. Net profit margin of Tomypak should increase to around 10% or higher after more advanced machinery installation and hard work by management's effort ^.^ I'm sure we can enjoy the Tomypak journey together with management team.

@koseng, agree :) Looking forward 2017Q1 on 18 May 2017.

Crude Oil Price is around 32 USD on 2016Q1 vs 52 USD on 2017Q1; (increase cost of production)
USD to RM is around 4.2 on 2016Q1 vs 4.45 on 2017Q1; (better foreign exchange gain)

I will remain cautiously optimistic of the Group’s performance for the 2017Q1 financial result.

PROSPECTS

"Management have been evaluating sources for latest more high tech and efficient printing and laminating equipment to be added over the next two years to completely fill both Tampoi and Senai plants."

"With the completion of the new plant and the comprehensive realignment of both plants in addition to the upgrading of all supporting areas, Management expects that the performance of Tomypak Group will continue to improve with better performance in the immediate future."

@ozzie75, I'm looking forward CIMB Research value Tomypak expansion plan this year :P

http://www.theedgemarkets.com/article/tomypak-triple-production-capacity
"We maintain our earnings per share forecasts and TP, based on a 40% discount to Daibochi’s 2017 13 times price-earnings ratio target. We are keeping this sizeable discount as we are still unsure about how the company managed to achieve its rapid profit margin recovery after the entry of a new major shareholder in the fourth quarter ended Dec 31, 2014. Switch to Thong Guan Industries Bhd. — CIMB Research, Dec 13"

@hero666, below is what I think regarding share price performance of Tomypak and Tomypak Wa:
1. Shares Issued (166,432,398 vs 54,733,770);
2. Share price (2.25 vs 0.75);
3. Maturity Date of Wa is on Jun 21, 2021;

1 unit of Tomypak mother can buy around 3 unit of Tomypak Wa.
Shares issued of Tomypak is also around 3 times bigger than Tomypak Wa.
Wa still can trade for more than 4 years up-to-date.

"Cheaper" share price, "Lower" shares issued and long life span of Wa should explain why the Wa "running" better than mother.

Tomypak Wa is trade at 34.50% premium now.
I will interpret that Wa share holders also look positive about the expansion plan.
Higher premium % of Wa has price in the factor :)

Assume Tomypak successful triple production capacity in 2021 as plan. http://www.theedgemarkets.com/article/tomypak-triple-production-capacity
It is possible that Tomypak share price up to RM 6.00 (without consider up-coming share split and bonus issue) and Wa value will be around RM 3.71 (without consider up-coming share split and bonus issue).

It will be around 3 times of current Tomypak share price;
It will be around 5 times of current Tomypak Wa share price;

High risk High return for Wa :P

Anyway I will still prefer hold Mother to enjoy dividend yield and expose to lower risk :)
No any buy or sell call.
I just share what my opinion regarding your concern.
I might be wrong but I hope Tomypak management can help to make it come true ^.^

Management background and ability are what I concern before investing a company. Mr. Lim Hun Swee and TAN SRI DATO’ SERI ARSHAD BIN AYUB are the key person in Tomypak.

Tan Sri Dato’ Seri Arshad Bin Ayub is the Chairman and Independent Non-Executive Director of the Company since 10 March 1996. The following is the list of directorships:
Malayan Flour Mills Berhad - Chairman
Karex Berhad - Chairman
Kulim (M) Berhad - Director
Top Glove Corporation Berhad - Director

Mr. Lim has more than 20 years managerial experience in manufacturing, sales and marketing, having served as the founder cum Managing Director of In-Comix Food Industries Sdn. Bhd. Mr. Lim also sits on the Board of Director of Johore Tin Berhad.

All are well known and good company for long term investment :)

@koseng, congratulation. I join Tomypak early February 2017. I slowly accumulate after reading through Tomypak financial report, annual report, management background etc. I'm confident towards its expansion plan as mentioned earlier. I believe you can see how new management team's effort to sustain and expand Tomypak growth. They also put effort to improve profit margin, increase the value to shareholders, improve speed and accuracy of generating relevant
information for costing, procurement, production planning and decision making etc. This year should be great achievements for Tomypak.

@koseng, this is what I believe regarding CIMB small cap fund left Tomypak.
CIMB don't look good regarding Tomypak expansion plan.

http://www.theedgemarkets.com/article/cimb-research-downgrades-tomypak-reduce-trims-target-rm184
http://www.thestar.com.my/business/business-news/2016/05/19/tomypak-skids-early-thursday-cimb-research-keeps-reduce-call/

However I have a different view with CIMB research team.
Let see how end of the year :)