Without including pepsi co and coca cola co ,this two multi giant drink companies.Based on my observation,It is not easy to start a company to produce drinkto match against the big 4 drink companies in malaysia. In malaysia, they are (1)seasons produced by f&n , (2)drinho by lam soon, (3) yeos by YHS & (4) rex . Rex is a small market capital (below RM100 millon ). I believe Rex have something special that able to survive against the 3 giants so many years.
Sorry, this is very boring stock and suitable for old man like me.I already hold this boring stock for one and half year. I even chase high at RM1.51 recently. This is the last gem in food & beverage companies that need to awake. Rex is starting to become ambitious and will aggressive to expand their business into middle east who has 400 million population soon.
Rex has foresee the lucrative money that made from biscuits companies like Hupseng, Jacob, Julie and Munchies by acquire a biscuit factory.I predict Rex is going to produce biscuit and get a piece from multi billion biscuit business. If Rex able to produce biscuit, it will be the only one company which able to produce cans food, drinks and biscuit in bursa.
The last gem of food & beverage company in bursa,Rex is showing enthusiasm to expand into lucrative biscuit business. Although Rex never produced biscuit before, but Rex just bought 4.2m shares or 5.612 % of Hwatai which is considered as one of the oldest biscuit producer in malaysia, i think Rex intends to get the formula and knowledge from Hwatai. By leverage knowledge and experiences of Hwatai on their acquired biscuit factory, Rex able to short the gestation period. Soon, Rex will join the biscuit civil war between hupseng, jacob , Julie and Muchies.
Rex new management -Mr Darmendran Kunaretnam(own 5.7%) and Chee Cheng Chun(own 20.4%) decide to dispose JYR which is belong to china business to the founder, old management;Mr Lee Chai Seng(own 17.4%) by RM21M. As a result, rex will cease exporting to China market which is contribute 20% revenue of annual revenue.
Both of Rex new management want to focus to do business at Asean and consolidation of operations.Rex will utilize the disposal money which is RM15m of RM21m to expand into Indonesia. Rex will upgrade their factory which is located Jawa Timur that is capable of producing canned crabmeat, escargot and other seafood products. The management intend to reduce dependent on manual labor during the packing process to move the empty cans from pallets into the system to fill up with seafood. They will install suitable machinery to further automate the production line of PT Rex Canning to achieve higher output at an improved speed.
I will continue to hold or even accumulate Rex because i think the new management are working hard to lead Rex in the right direction to become growing company Although Rex will lost contribution of 20% revenue from China market by dispose JYR,but i believe the expansion of Indonesia will cover the gap of the 20% in the future. Indonesia is having 260m citizen which is about 8 times of Malaysian (31m). I am positive about growing of Indonesia.There will be more middle class going to increase from Indonesia due to growing gdp. They will have more disposable income to buy canned crabmeat and frozen seafood from Rex. 16/06/2016 22:35
I was dissapoiting after seeing Rex perform poor result for the last two quarters, i was doubt for myself that i had invested and hold in wrong company for pass two years. However,after i had read the latest annual report, i chase high to add Rex at RM1.51 today. The company introduces new energy and flavoured drinks such as Rexbull and Rexberry and cream biscuit under name of Mombo. it is showing Rex desperate to grow and would become more completed food and beverage company by having energy drinks and biscuit. I had not buy enough unit of Rex that i want. I will continue to acumulate Rex when i got extra pocket money in the future.
I am glad to see Rex suddenly shoot up with little volume and closed at RM1.58,looks like somebody is collecting Rex.Hope Rex can continue its rally in the future.
Rex today very big volume . Got people buying 5000 lot at RM1.62 and RM1.65. I had not seen Rex has such a big volume since two years ago. I believe Rex is going to benefit by new production of energy drink and Mambo biscuit. Bursa dont have much company that doing food and beverage together. Rex is the last f&b sleeping giant to wake up. Ini kali lah!
I sad that i loss opportunity to invest in a company which is going to enjoy continuous growing profit from new production of energy drink and biscuit. What to do, i just can say that are too many croc privatise growing company, but listed the company that unable to grow or cash out mature company. This is rule of capitalist game.
Aiyo, i thought rex will be tapao away by people at RM1.65. I surprised that Rex still able to move to RM1.83 .There are people are paying premium to challenge the overtake.
if you noticed the buy vol of 1.55 is so much higher than the selldown today. this mean if really bonescythe is the buyer, he would still be holding massive amount of stock.
If I am hi will do that also lah.what? U think information so cheap? But at least he left bones for u to eat. What? Yeah, many ppl so dogs mah, must eat bones by others. Tak Ada Akal sendiri
Haha. Bone soup? I prefer abalone and shark fin. Those against shark fin funny. Can't kill shark but can kill fish to eat? Mana logic? Shark also fish. Must well don't eat fish
Who cares where you catch? The point is eating shark fin is eat fish, eat normal fish also fish. Why banned shark fin Not ban fish? All mat salleh ideas. They kill more dolly fish!
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....
Yan kin Tsong
168 posts
Posted by Yan kin Tsong > 2015-04-21 12:17 | Report Abuse
lai liao lai liao.....new high agains.....huat ar!