Too bad this Group was managed by an incompetent management team together with the Brothers. What they are doing well is to squeeze shareholders money but no a business builder. with all the capital raised, this would be a RM2 billion company and not 2.37 billion shares issued. This prove that people in JAKS are brainless

there is still a silver lining, the energy business but provided that both brothers want to do that. Else they going to destroy his father's legacy

Andy Ang & his bro are going to destroy the legacy that his father built. It started as a decent water pipe contractor to undertaking major water and sewerage infrastructure projects. Under the helm of both brothers and incompetent management, it is taking a toll of its financials and businesses. Reputation of JAKS across all its business segments are like a rotten egg

it is a Group with trust issues. not only from the shareholders but other stakeholders too. that's why they need to keep venturing into new businesses

First rule is the overly paid CEO, directors and management team. Serious issue on their leadership, acumen and importantly conduct. They paid themselves well with free shares of RM12 to 14 million per year. All the businesses from the surface with good earnings but none cash flow generated. All the businesses ventured either loss-making or ended with legal tussles. They can never bootstrapped & generate its own cash flow. All reliance on the equity to issue money. to make things worse, there were many questionable impairments of receivables but no effort to get them collected

Rights issue is imminent to improve its balance sheet. Sot that it can restructure its loan. Its balance sheet is getting weaker

remember its market is not Malaysia, only serving 33m of population. It is serving Indonesia, Philippines, Vietnam and Singapore as well. all in all, 530m of population.

when we are looking into poultry business, we cannot choose all the players. scale does matter

once the selling exhausted, new batches of investors would come in. those that are seeing the value. Short-term it would back to 70 cents level.

with the size of LHI and its economies of scale, they are doing much better than its competitors. they can gain 25% more per kg of chicken they sell as compared to its competitors. And now they are getting market share from its smaller competitors as they wobbling with their operating costs. remember LHI is integrated and they have advantage on their downstream retail segment and also the feedmill business

Cash flow doesn't lies. RM1 b of operating cash flow and RM800m of free cash flow is commendable as cash is the king. they are doing right to reduce the capex from RM400m to RM200m now and focus on downstream so that they can expand the margins of its poultry segment. as for feedmill, it is not an issue as they are getting a healthy profit margin of c. 14% and as they increase their capacity it will grow. it bode well with the corn and soy prices stabilisation. i see that given a bit more time, we can see that they would have a consistent dividend yield of 5% per annum

some of its assets are loss-making including its durian plantation and shopping mall. it needs at least 5 years to start generate positive cash flow

As for now, the concern is worrying for this quarter as its current ratio is 0.7x. Meaning they have to restructure their debt & to raise more funds. It is likely that equity fund-raising is possible via rights issue or placement exercise

it is a bit worrying this time around on their debt loading of RM6.3b with interest rates of 5.5-6% while the toll concession assets only generated about 2.8% return. they haven't achieved the traction they needed as seek EPF extension for listing exercise. However, it will be forthcoming for the next 2-3 years for the listing of its toll concession assets

The finance cost is double the operating profit generated from the toll concessions. For such sizeable toll concession assets of RM7b, it is only generated about 2.8% operating profit and not even sufficient to cover its interest cost of between 5-6%

It may impede their ability to secure more projects in the future. It is getting risky with this weak balance sheet. That's why insiders are selling

Based on latest Q results, current ratio is 0.7x, means they would face difficulty to repay their short-term commitments. They need to commence negotiations to restructure their high debt on in jeopardise on default in debt obligations

ignored counters like YTL, YTLPower. it was a neglected counters. Now ...

Give it some time and you can see value would creep in..

Nope, if you're a value investor they offer good value proposition; fortress cash flow, cost leadership, with good vertical from upstream to downstream. They are taking over from the smaller players. they earn 30% more per kg of chicken as they are becoming bigger.

the most important is now it achieved above RM1b of cash flow from operating activities. It It is commendable as it can be used to repay a dividend to the shareholders

(i) we can expect revenue growth in 1HFY24 for the livestock segment due to higher ASP due to floating prices (ii) LHI is gaining more market share from the smaller competitors (iii) Stable margin from its feed mill segment (iv) its low capex and continued financial discipline to pare down debt would allow it to increase its profitability

LHI as the big bro. If it sneeze, everyone got a cold. you can see all the poultry companies got affected by LHI 10% contraction in earnings. But overall, I can see good development for LHI going forward

But it is better to look into LHI on annual basis. Quarterly results is quite distorting

Despite drop of 10% to its PATAMI but it is still a commendable results

The Group is disciplined in reducing their debt. Just take FYE22-23, almost RM1b of debt already repaid while the Capex has been trending now to RM220m for FY2023. Also, the operating cash flow of RM1b for FY2023 is the highest ever for the Group. It is better to look the results on annual basis and you would see that it is a growing company with a decent margin. It is the most profitable poultry company in Malaysia and ASEAN

“As we enter into 2024, lower inflation outlook and expected reduction in interest rate would stimulate demand. Poultry is a relatively affordable source of protein, therefore we are confident that the industry will continue to thrive.” Tan Sri Lau Tuang Nguang added

Despite the myriad of challenges presented by the global economy, including geopolitical tensions, and inflationary pressures, the Group has demonstrated resilience and performance throughout FY23. The Group concluded FY23 with a record revenue of RM9.54 billion, an increase of 5.5% as compared to RM9.04 billion for the previous financial year. PATMI for FY23 stood at RM301.70 million versus RM218.90 million recorded in the preceding year, representing an increase of 37.8%. This was due to improved profits in the feedmill segment, driven by higher average selling prices and reduced raw material costs across Vietnam, Indonesia, and the Philippines, along with better margins from better average selling prices due to improved sales mix in Malaysia's livestock and poultry segment

Executive Director / Group Chief Executive Officer of LHI, Tan Sri Lau Tuang Nguang shared, “We are pleased to have achieved the highest profit ever for the Group with EBITDA of RM1.04 billion and PATMI of RM301.74 million. During the year, the Group had reduced its borrowings by RM574.63 million and lowered its net gearing ratio to 0.59x. This provides the Group with a strong financial position to capture potential opportunities in our operating markets.”

We should able to see the turnaround of business in MMSV

The global Semiconductor industry appears to be nearing the end of a down cycle and is expected to begin
its recovery soon. The outlook for 2024 points to an upswing in the worldwide Semiconductor market.
The Group anticipates the sales revenue to improve gradually over the forth coming quarters. Moreover,
we have successfully secured new businesses in the likes of the Medical and Energy Storage industries.
We are cautiously optimistic that we will benefit from these new markets.

RM157m can easily be sorted out with 1 quarter of its profit. Remember its feedmill segment contributed 60% of its earnings. Not by selling chicken and eggs

The raw materials for its feedmill business is at 3-year low, back to pre-pandemic. It'll bode well for its business

That's why RM1.08 it is a baseline. However with their growth in earnings and regional exposure, it could be much higher even surpass RM1.20

It is the only integrated poultry player with regional presence in all the 3 most populated countries in ASEAN. With automation & solar panels used in their farming & manufacturing facilities, it is a much larger Group than what it is during its IPO. See the revenue trend and u can see that it is slowly grow from RM6b to RM10b profit per annum with higher margins

https://www.foodbusinessnews.net/articles/7-corn-soybean-futures-fall-to-fresh-three-year-lows

RM500k per person for each management team. That's exorbitant for the level of experiences

They need to do cost-cutting measures. 2 Directors are taking above RM3m of remunerations while 5 management team are taking RM500k per annum. Even the CFO is only 32 years old only while the rest of the management team is quite young. All-in-all, RM6-7m paid to 7 persons

Good or not, you can analysis both Qualitas & Mediviron business models and financials. You can buy their documents via SSM. So far Cengild is still wobbling with their financials and business model

It is multinational poultry company that have presence in many developing countries like Indonesia, Vietnam & Philippines. We are talking about population of 470m. lHI braces to grow strongly for the ensuing years

Based on its strong results going forward, the RM157m is not a big sum for them. Importantly to deal with the cartel allegations and reputation that matter. It is going to be a golden year for companies that deal with food security

Its subsidiary, Teo Seng recorded 5-fold in Q4 2023 results to RM66.9m. We going to see bright prospects & result for LHI for the ensuing years. RM1 to above is a reasonable fair value

70 cents is imminent in short term. 50% upside from this level is not impossible

70 cents is imminent. It is going to achieve record quarterly profit

Nice entry price now. It is the new Sasbadi with new pillars

If this Group is already been more than a decade long, then it is fine but not now. It is a high risk strategy at current juncture as they are still figuring the building blocks

They have a bad management team that wobbling around about their business strategy. light business model is a good strategy like in the case of Qualitas and Mediviron with high EBITDA. As a small Group with track record of 2017, it is bad strategy to commit such a high capital expenditure

slowly inching up to 60. 70 cents should be an interesting level

first time for many years, I see a healthcare counter that down so much. Typically, healthcare companies should be the most resilient counters

The worst performing healthcare in Bursa with almost 50% contraction. I believe many shareholders have doubt of the recent Proposed Acquisition and change of business model from asset light to heavy