Posted by Pisangraja > 2021-02-11 17:03 | Report Abuse

Correct me if I’m wrong... if 49% of DSSB is worth RM420m, then its valuation is RM857m or RM0.85 per Mflour share

Posted by core9design > 2021-02-11 18:09 | Report Abuse

Wrong la pisangraja. They are buying 49% of dinding ayam, a subsidiary of Mflour. Based on revenue, dinding ayam contributed rm700Mmil out of RM2.8bil revenue in 2020.

So if they are willing to pay RM420 mil for a subsidiary, hence Mflour's actual valuation is much higher than RM1

Posted by core9design > 2021-02-11 18:13 | Report Abuse

AMINVEST RESEARCH

We maintain BUY on Malayan Flour Mills (MFM) with a higher fair value of RM1.33/share (vs. RM0.69/share previously). Our fair value of RM1.33/share is based on a fully diluted FY22F PE of 18x instead of FY21F originally.

· We have assumed a higher PE of 18x vs. 15x previously as we believe that MFM would benefit from having Tyson Foods as a partner. MFM would be able to leverage on Tyson Foods’ global customer network.

· Globe Newswire announced that Tyson Foods and Malayan Flour Mills have formed a partnership, in which Tyson Foods will invest 49% in MFM’s poultry division. The investment sum for the 49% stake was not disclosed.

· We have not factored the disposal of the 49% stake in the poultry division in MFM’s FY22F net profit yet. We believe that any loss of earnings from the disposal of the 49% stake would be compensated by higher interest income (from the disposal proceeds) or lower interest expense (from the repayment of borrowings).

· As at end-FY19, the poultry division’s gross asset value was RM1.0bil. We do not know the division’s liabilities. Assuming a price to gross asset value of 1.0x, the sale of the 49% stake in the poultry division would generate cash of about RM490mil. MFM would be able to use the cash to pare down borrowings, which stood at RM1.2bil as at end-FY19.

· More importantly, Tyson Foods would be able to help boost the earnings of MFM’s poultry plant in Lumut by being an off-taker. MFM would be able to sell some of its poultry products at the Lumut plant to Tyson Foods, which has a global network of customers.

· Currently, we forecast that MFM’s poultry division would break-even in FY21F after a loss of RM44.5mil in FY20E. We expect the poultry division to record an EBIT of RM23.6mil in FY22F. The poultry division recorded a loss before interest and tax of RM54.9mil in 9MFY20.

· MFM’s poultry plant in Lumut started operations in late-FY19. We believe that the poultry plant is currently operating at an utilisation rate of 40% to 50%. Due to Covid-19, which has resulted in limited dine-in at restaurants, the plant suffered from a drop in poultry demand on FY20. The plant has a total production capacity of 280,000 birds per day.

· We think that HORECA accounts for 60% of MFM’s poultry sales currently. We believe that MFM’s exposure to the live birds market has declined to 40% from 50% due to the commissioning of the poultry plant in Lumut in late-FY19.

AMINVEST RESEARCH

Posted by hooi > 2021-02-11 19:15 | Report Abuse

continue lose money in poultry business.

Posted by hooi > 2021-02-11 19:16 | Report Abuse

the bleeding will continue even though Tyson take 45 %. no hope this dindings poultry. sell

Posted by hooi > 2021-02-11 19:17 | Report Abuse

karma for the killings of million birds

Posted by ChinaMade > 2021-02-11 21:27 | Report Abuse

why use 2 accounts to comment? ur mistake is u put 45% takeover comment from both name.. lol ur funny level getting higher

Posted by weh9168 > 2021-02-11 21:52 | Report Abuse

This is a right strategy with the support from Tyson who own Mac Food ( supply to Mac Donald)will lend support to Dindings to take market share away Ayamas

Posted by weh9168 > 2021-02-11 21:55 | Report Abuse

Dindings product can penetrate Mac Donald vs Ayamas to Kfc

Posted by Allenlee > 2021-02-12 10:24 | Report Abuse

https://www.klsescreener.com/v2/news/view/789811

Posted by Snowpiercer > 2021-02-12 13:22 | Report Abuse

I think at the end mfm will get much lesser than 420m. They will not meet the profit guarantee

Posted by Penang123 > 2021-02-13 06:06 | Report Abuse

Coming Monday TP : Minimum > MYR 1.50 for sure !

Posted by wongcl1818 > 2021-02-13 16:56 |

Post removed.Why?

Posted by Penang123 > 2021-02-13 19:17 | Report Abuse

@ wongcl1818 what is MFLOUR(2 Mil) stand for ? pls adv

Posted by Petronas > 2021-02-13 21:11 | Report Abuse

According to the research house’s forecast, inflation is expected to turnaround but remain relatively benign at 1.7% this year, with the expectation of economic growth recovery.

Posted by Penang123 > 2021-02-14 14:12 | Report Abuse

tomorrow can rocket or not ?

Posted by Snowpiercer > 2021-02-14 14:54 | Report Abuse

Nothing to lose for Tyson....but.....for MFM no choice before it goes under

Posted by Penang123 > 2021-02-14 15:35 | Report Abuse

@ Snowpiercer - Not understand what are saying ? tomorrow up or down ?

Posted by core9design > 2021-02-14 18:42 | Report Abuse

Of course it will go up @Penang123, dont believe these ppl wanna catch at low price. TP1.5-2.0

Posted by snwong13 > 2021-02-14 19:23 | Report Abuse

.
Surely it make very clear sense Tyson Food presence in MFM, when Tyson Food has a global presence! MFM poultry products can widen it's global marketplaces. Go longer term for handsome rewards . Good luck !

Posted by awesome20 > 2021-02-14 19:27 | Report Abuse

tak lama lagi 1.30/1.50 mlflour ni

Posted by Allenlee > 2021-02-14 23:27 | Report Abuse

Yes agreed with @snwong13

Posted by SIQ555 > 2021-02-15 01:00 | Report Abuse

Huge and strong company like Tyson will not make an entrance in partnership without conducting their "due diligence", which includes innovations and future businesses.

Posted by Pisangraja > 2021-02-15 08:08 | Report Abuse

Going forward, Tyson will buy processed chicken from Dindings... 40mil birds per annum and growing. Dindings will benefit from the economies of scale and their new plant in Lumut will be fully utilized

Posted by Pisangraja > 2021-02-15 08:25 | Report Abuse

At 0.985 or mkt cap of 998m, Mflour shares are grossly under valued... based on Tyson's acquisition of 49% of Dindings for 420m, just a single subsidiary of Mflour is already valued at 857m.

Posted by core9design > 2021-02-15 09:36 | Report Abuse

Exactly @Pisangraja. This is hidden gem. Institutions/syndicates are just pushing down to collect at bargain prices. The chart looks good to continue rocketing up

Posted by jolow > 2021-02-15 12:44 | Report Abuse

continue uptrend

Posted by SIQ555 > 2021-02-16 14:28 | Report Abuse

Tyson, massive corporation and listed in US, at approximately US65 pershare currently. Just need MFlour share price to move to US1 (momentarily adequate).

Posted by aibo > 2021-02-17 16:24 | Report Abuse

this counter quite strong, hope can see it break 1.16 soon

Posted by aizuddin666 > 2021-02-17 16:55 | Report Abuse

tomorrow break 1.06

Posted by core9design > 2021-02-17 18:48 | Report Abuse

Strongly supported. No issue to skyrocket this year

Posted by cu29ok > 2021-02-22 11:46 | Report Abuse

each time after u all mention break this price, break that price...then surely drop and drop. :(

Posted by cu29ok > 2021-02-22 11:46 | Report Abuse

skyrocket? in your dream...

Posted by weh9168 > 2021-02-22 20:10 | Report Abuse

Wait for Q4 results which will be announced latest by 26th feb

Posted by Penang123 > 2021-02-22 22:20 | Report Abuse

Drop to 70 cents tomorrow confirmed

Posted by LiTech > 2021-02-23 09:32 | Report Abuse

Penang123, do you have news that we do not have? How about sharing it with us?

Posted by Penang123 > 2021-02-23 09:55 | Report Abuse

Now go to 80cents..afternoon 70cents

Posted by LiTech > 2021-02-23 10:08 | Report Abuse

Penang123, we need crystal ball to see the future and not meatball to guess the future

Posted by LiTech > 2021-02-23 10:22 | Report Abuse

Penang, the force selling just finished and see you at RM1 soon

Posted by JH1985 > 2021-02-23 12:46 | Report Abuse

Aminvest already put TP at 1.3x... sure will have some profit taking here and there plus global markets so bad this week, but have patience lah.

Posted by Bigfoot > 2021-02-23 13:09 | Report Abuse

It really depends on the Q4 results... not sure if you read through the details of their announcement on the partnership with Tyson. RM420 million is the best case scenario assuming they are able to meet the very aggressive profit target of FY22 and FY23, lots of caveat. Worst case scenario is they will only get RM125 million for 49% of the JV. This is the most attractive proposition for Tyson but it doesn’t look good on MFM.

Posted by curly2328 > 2021-02-24 11:50 | Report Abuse

Flour, good stuff.

Posted by JH1985 > 2021-02-24 12:22 | Report Abuse

I suppose thats the risk you take as an investor. If the deal goes through and MFM has Tyson's market channels, supply to Macfoods etc etc it will be a Rm2-3 share, where got 90sen for you to buy that time... current price ie laughably low at below net asset value. Having said that I believe they have big plans for their new plant hence the aggressive targets, currently super underutilized!

Posted by CyberShot > 2021-02-25 09:48 | Report Abuse

If you study klse properly, such company with jv will usually give bonus issue to reward shareholders. We are going through a hyper-inflation once vaccine available to global economy and definitely Mflour will have a good bite of profit going forward. Even without Bonus Issue, the share price should hit all time high within this year as there is no reason of not moving upward. See you all at the bank and have a great Mflour year with the OX

Posted by Pisangraja > 2021-02-26 12:47 | Report Abuse

Q4 report should be out anytime soon... hopefully, the results is better than Q3, to confirm that it’s has fully recovered from the negative impact of the pandemic and the business on the uptrend

Posted by Pisangraja > 2021-02-26 12:54 | Report Abuse

Dindings can easily expand its broilers farming and it has ample spare processing capacity ... it’s major weakness was its marketing expansion. With Tyson on board, there’s a ready demand for chicken meats

Posted by Snowpiercer > 2021-02-26 15:51 | Report Abuse

As of now, way overvalued.....the tie up with Tyson has revealed its weakness....highly indebted....not sure can meet the profit guarantee under the deal

Posted by Eastern686 > 2021-02-26 18:56 | Report Abuse

Mflour poultry business mostly make loss in more Q than making money Q, st2pid pembela ayam.

Posted by core9design > 2021-02-27 09:01 | Report Abuse

Good quarterly results. Can only improve from here

Posted by LiTech > 2021-02-27 10:03 | Report Abuse

Easterner686, this means that the Management made the right decision and this type of company will grow according to market requirement. Good business men or Management will know when to let go and this is what wise investors want to see. Those traditional management will usually hold tightly and end up more lost at the expense of all investors. Nokia CEO ended his speech saying this “we didn’t do anything wrong, but somehow, we lost”. I am fully confident that MFlour Management will give more good reports from now on and will allocate more fund to invest in this company.