Type Announcement Subject OTHERS Description Single Tier 2nd Interim Dividend in respect of financial year ending 31 December 2019 The Board of Directors of Johore Tin Berhad ("JTB" or "the Company") is pleased to declare a Single Tier 2nd Interim Dividend of 1.5 sen per share in respect of the financial year ending 31 December 2019.
The payment date and entitlement date of the Single Tier 2nd Interim Dividend will be determined at a later date.
"This is mainly due to higher material costs and relocation costs incurred by Kluang Tin & Can Factory Sdn Bhd (“KTCF”) which is completed in the current quarter. "
this is one time
"mainly due to higher production cost from water supply disruption in the current quarter" hope...... this is one time also
Outlook •Tin Manufacturing segment is becoming increasingly competitive, though the softer tinplate price is likely to provide margin stability in the near-term. •F&B sales volume is projected to be strong driven by domestic capacity expansion and strategic JV in Mexico. With regards to input cost, we opine that management would proactively manage its procurements and price negotiations. •There are >60% of F&B sales exported to Asia, Central America, Europe and Africa. As such, we believe weakening Ringgit is expected to support export sales.
Valuation •Reiterate Buy on JTB with a higher TP of RM1.80/share. We value the F&B and tin manufacturing segments at 15x and 8x CY20 EPS, respectively.
Source: TA Research - 30 Aug 2019 Update on Mexico plant. We expect the new condensed milk production in Mexico to commence by 3Q19. As at FY18, Central America accounted for about 38% of its sales. To recap, the commencement of the new plant is expected to release about 20% of existing capacity in Malaysia which will gives JTB more room to take up new orders and cater to existing and new customers’ demands. Management is confident of immediately filling up the free capacity due to strong demand growth from both its local and export markets. It also plans to push for more orders before the commissioning of the Mexican plant. •Net cash position. JTB is currently in a net cash position of RM50.6m (net cash per share of 16 sen). Its borrowings are mainly short term due to trading nature of the business. Although JTB does not have a formal dividend policy, it has been paying out an average dividend yield of 3% between FY14-18.
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....
KS Lim
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Posted by KS Lim > 2019-08-22 15:44 | Report Abuse
uncle lim why this counter keep ding dong at this price range
really worth to buy and wait ? tqtq