YHS is very under-owned by the institutional funds, given its defensive attributes, a strong F&B franchise and a well articulated expansion strategy, valuation re-rating looks imminent.(Am research)
We came back from a meeting with management with a positive view on Yeo Hiap Seng (Malaysia) (“YHS”). We reckon that the company, whose name is a famous household brand, is now a potential turnaround story that could be worth following. The main catalyst is that YHS is likely to do well under the helm of a new management and CEO, who has lined up a more aggressive growth direction for the company. The change in its business model is starting to shape up its earnings turnaround story with 2011 being the turning point and the current year likely to ride on the strong momentum going forward. The company has also a history of paying steady dividends with attractive yields of around 5%-7%.
Right model showing the right numbers. The recent changes in management, which also saw a new CEO taking the helm, has seen the new leadership embarking on several initiatives to enhance and grow the company’s profitability. The company is presently undergoing a business model restructuring by focusing back on its traditionally strong YHS’s core brands and products such as Asian soft drinks (ASD), Cintan, Justea, SoyRich and H-Two-O. Focusing on profitability and the right product, management has successfully cut down its excessive products range from over 200 stock-keeping units (SKU) to just 100 and is correctly targeting only 40 SKU which gives it the highest profitability.
The Board of Directors of Yeo Hiap Seng (Malaysia) Berhad (“YHSM” or the “Company”) wishes to announce that Bursa Malaysia Securities Berhad has approved its request for suspension of trading in the securities of the Company until 5.00 p.m. on 31 May 2012.
The request for suspension is in view of the pending release of an announcement relating to a material corporate exercise.
The Proposed SCR will be funded by way of a loan from YHSS and/or financing facilities to be obtained by YHSM from financial institution(s). Any loan made by YHSS to YHSM pursuant to the Proposed SCR will be funded from YHSL and/or its subsidiary’s internal resources. The consideration for the Proposed SCR will be satisfied entirely by the Proposed Cash Amount of RM3.60 per YHSM Share.
a price-to-book ratio of approximately 2.08 times and 2.00 times based on the audited consolidated net assets (“NA”) per share of YHSM of RM1.73 as at 31 December 2011 and the unaudited consolidated NA per share of YHSM of RM1.80 as at 31 March 2012 respectively;
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Kdk Koh
12 posts
Posted by Kdk Koh > 2012-05-13 03:52 | Report Abuse
i have buy it~ have any suggest for me? tq very much~