to know that it ipo at 0.15 after bankers calculated the value of the company plus some % increment. The current value at 0.275 after it incurred declining profits is currently at the overbuy zone, due to speculation to its logistic business in east Malaysia. But as long as it is not showing any improvement in profit means it is still over bought at the moment
Top tier distributor of CPG in EM. KTC currently distributes approximately 10,348 stock keeping units for 38 brands owners through its 19 distribution centres. Going forward, KTC is expanding its distribution operations and manufacturing operations in Sabah, Sarawak and Brunei. Impressive expansion plans. After its recent acquisitions of Popular Trading, Trans Paint and Grandtop Marketing as well as securing distribution contracts from SCGM’s plastic cup and Anakku Sabah, we expect management to continue its efforts to further strengthen its distribution arm in EM. Management guided that a few negotiations between KTC and MNCs/local well-known companies are on-going and the acquisitions/distribution contracts are expected to conclude by mid-2016. The series of acquisitions/distribution contracts, if successful, are expected to significantly boost its FY17 performance. Robust CPG market. According to Vital Factor Consulting, CPG market size in EM is estimated at circa RM6.8bn. For the time being, KTC only captured about 10% or RM290m of the distribution in Sabah and Labuan and less than 1% in Sarawak, indicating that there is ample growth for KTC to strengthen its distribution points and grow its market share. Sustainable margin. While KTC’s own brands of CPG (e.g. “Orie”, “Bamble” and “Creamos”) contributes circa 5% of total revenue, it offers higher GP margin of circa 28% as compared to the main contributor of 3rd party brands of about 13%. Coupled with the additional bakery production lines, we see strong cushion to protect KTC’s earnings margin from the downside.
We derive our TP of RM0.49, based on distribution industry peers’ average P/E of 15.3x, which is justifiable given its proven and established track record since its listing, future strong earnings growth; experienced management team and margin expansion due to initiatives in own brands of CPG. Source: Hong Leong Investment Bank Research
What kind of corporate news is this??? As supermarket supplier/retailer it is norm for them to be appointed as distributors... etc for many brands/products.
News on Anakku appointment..... hike the price to 5sen??? Amazing !
So now they going to try with Marigold..... another 5sen???
Tmr Roti Gardenia another 5sen???
Pure stupid...that appointment has no value....any pakcik, apek, mamak can be their distributor!
KUCHING: Kim Teck Cheong Consolidated Bhd (KTC) has entered into various distribution agreements for the distribution of dairy products and soft drinks.
The company in a filing to Bursa Malaysia yesterday said Kim Teck Cheong Distribution Sdn Bhd (KTC Distribution), a wholly-owned subsidiary of KTC and Kim Teck Cheong (Sarawak) Sdn Bhd (KTC Sarawak), a 80 per cent equity owned subsidiary of KTC, had on June 13 entered into separate distributorship agreements with Cotra Enterprises Sdn Bhd (CESB).
KTC added the distributorship agreements with CESB has granted the group the right during the continuance of the agreements to purchase for resale of the following products in Kudat, Kota Kinabalu, Beaufort and Miri.
The products are Marigold’s ultra heat temperature (UHT) Asian drink, Marigold’s UHT fruit drink, Marigold UHT 100 per cent fruit juice, Marigold’s UHT milk and Marigold’s canned milk.
The appointment of KTC Distribution and KTC Sarawak respectively as the distributors of CESB’s products will enable the company to further expand its portfolio of distribution of third party brands and products across the territories.
Kim Teck Cheong (Sarawak) SB (KTC Sarawak), an 80%-owned subsidiary of Kim Teck Cheong Consolidated, has entered into a distributorship agreement with Anakku SB. KTC Sarawak is appointed the non-exclusive distributor under the agreement for the sale and distribution of Anakku's hardline accessories, fast moving consumer goods and softline products. The agreement is for a one-year period, starting from Jan 1, 2016, and shall be automatically extended upon the expiry thereof for a further one year. (Financial Daily)
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....
malayalee425
121 posts
Posted by malayalee425 > 2016-05-25 15:55 | Report Abuse
Bad QR, sayonara kali nie... tunggu sampai bila nie nak naik balik 0.40??