AE MULTI HOLDINGS BHD
KLSE (MYR): AEM (7146)
You're accessing 15 mins delay data. Turn on live stream now to enjoy real-time data!
Last Price
0.07
Today's Change
-0.005 (6.67%)
Day's Change
0.07 - 0.075
Trading Volume
253,500
Post a Comment
Market Buzz
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
Apps
Top Articles
3
save malaysia!
5
BFM Podcast
6
BFM Podcast
8
BFM Podcast
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
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....
x3sphere
510 posts
Posted by x3sphere > 2020-06-23 19:09 | Report Abuse
KUALA LUMPUR: AE Multi Holdings Bhd is optimistic that it will return to the black for the financial year 2021 (FY21), driven by the new venture into palm oil milling.
AE Multi said it was banking on its new turnaround strategy including palm oil milling, which it targets to kick off in FY2021.
On June 10, its wholly-owned AE Multi Industries Sdn Bhd (AEMI), entered into a Heads of Agreement with Palm Pro Engineering Sdn Bhd to form a joint venture company, allowing it to diversify into palm oil milling.
AE Multi said the joint venture company would carry out milling and processing of oil palm fresh fruit bunches and trading of crude palm oil and palm kernel, among others.
Group financial controller Michael Chou said the company had been looking for an alternative income stream due to the effect of Covid-19 pandemic and seen a great opportunity in the palm oil milling.
Chou said contrary to the misconception that the business would be significantly affected by the fluctuations of crude palm oil (CPO) prices, the milling business, which is the midstream operations, has low risk as there is no need to stock up inventory.
"The revenue and profits come from the processing operations and are not affected by CPO prices.
"Our business model is to purchase the FFB from upstream players, process them into CPO and sell to the downstream players.
"Wilmar International is currently our largest customer. The whole process will take less than a week," he said.
Meanwhile, he said Palm Pro had completed the upgrading of its machinery for the milling operations, and this had increased the efficiency significantly compared to a year ago.
"We are impressed with the 30 years of experience and track record of Palm Pro in this industry.
"With its strong earnings visibility and cash generation business model, we strongly believe this new venture will bring the company to the next level, and we are looking to position AE Multi as a dividend-play company in future," he added.