OBHB is in fortified food and beverages (F&B) and dietary supplements to third party brand owners and Orgabio is in beverages premix manufacturer. OBHB @ 0.25 is trading at forward PE 17 & Orgabio @ 0.385 is trading at forward PE 23.
OBHB are in compliance with various International & Malaysian recognized standards incl. U.S FDA ( Food & Drug Administration), U.S. HACCP (Hazard Analysis Critical Control Points System) , Australia NASAA Certified Organic, ISO 9001:2015 International Quality Management System, MeSTI from Kementerian Kesihatan, NPRA Malaysia from National Pharmaceutical Regulatory Agency, GMP Certified Good Manufacturing Practises, Halal Cert, etc. Kindly refer to the co presentation slides posted in BursaKakis Telegram Channel.
We ascribe a fair value of RM0.385 (an upside of 60.4% against IPO price of RM0.24) for OBHB. Our valuation is derived by pegging a P/E of 18x to the mid-FY26f EPS of 2.13 sen. We believe the P/E of 18x is fair, given that the average P/E of the closest peers (Fig #7) stands at 17.6x - Mcca Securities
They are so confident on that dispute issue with Nature One Dairy.
That Obhb issue statement: “However, Orient Biotech has put NOD on notice that it will hold NOD liable and seek full indemnification from NOD from and against all losses, damages, claims, expenses, proceedings, suits, legal costs (on a solicitor and client basis) that Orient Biotech may suffer as a consequence of the Dispute Notice, including but not limited to arising from compliance with NOD’s cease and desist demand, if NOD’s claims are found to be unsubstantiated or without merit,”
Obhb told the media that: “Based on the presented facts, there are differences between formulations and ingredients of the Relevant Product and NOD’s milk powder products. The common ingredients are generic and found in other products with similar purposes and benefits.
OBHB has demonstrated consistent revenue growth over the past four fiscal years, with revenues increasing from RM29.7 million in FYE 2021 to RM50.9 million in FYE 2024 ! This company is very stable
The construction of OBHB new factory commenced in January this year, and is expected to conclude in the first half of 2025, and assume commercial production in the first half of 2026.
The new 105,000 sq. ft. factory in Serendah, Selangor, will boost production capacity and improve operational efficiency, enabling OBHB to better meet the increasing demand in the health-related products industry
The new manufacturing facility will enable OBHB to meet higher order volumes and potentially secure new contracts, which could have a positive impact on financial results and stock value 🤗🤗
The rising global focus on health and wellness, particularly among Malaysia's aging population, presents opportunities for OBHB's fortified foods and dietary supplements
Apparently they are working on getting their products into more retail outlets and pharmacies, this means they will be getting more visibility and sales.
@growthstockhunter hard to gone wrong or right, just the trend going down after IPO... anyway once new factory starts production, things should go north again
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DreamKaiser
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OB Holdings edges higher on ACE Market debut after RM29 mil IPO
Izzul Ikram & Yu Jien Lim theedgemalaysia.com
29 Oct 2024, 09:24 am
https://theedgemalaysia.com/node/731956